The following are selected account balances from Penske Company and Stanza Corporation as of December...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: $ Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske (845, 000) 300, 750 160,000 Not given 80,000 (614,000) 438,000 920,000 634,000 Not given (532,000) (600,000) ($20 par) (150,000) Stanza $ (528,000) 132,000 228,000 0 60,000 (254,000) 552,000 410,000 1,076,000 0 (1,396,000) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $829,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $482,000 book value but a fair value of $602,000. a. As of December 31, 2021, what is the consolidated copyrights balance? b. For the year ending December 31, 2021, what is consolidated net income? c. As of December 31, 2021, what is the consolidated retained earnings balance? d. As of December 31, 2021, what is the consolidated balance to be reported for goodwill
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!