a. |
Consolidated copyrights |
$1618000 |
b. |
Consolidated net income |
$549900 |
c. |
Consolidated retained earnings |
$1075900 |
d. |
Consolidated Goodwill |
$72000 |
(Consolidated accounts one year after acquisition)
Stanza acquisition fair value ($10,000 in stock issue costs reduce additional paid‑in capital) |
$864000 |
Book value of subsidiary (1/1/18 stockholders' equity balances) (common stock + additional paid in capital +retained earnings) (200000+80000+362000) |
642000 |
Fair value in excess of book value |
222000 |
Remaining life |
Amortization |
||
Excess fair value allocated to copyrights based on fair value |
150000(732000-582000) |
6 |
25000 |
Goodwill |
72000 (222000-150000) |
indefinite |
0 |
Total |
270000 |
25000 |
Part A
Consolidated copyrights
Penske (book value) |
974000 |
Stanza (book value) |
519000 |
Allocation (above) |
150000 |
Excess amortization, 2018 |
(25000) |
Total |
$1618000 |
Part B
Consolidated net income
Revenues (add book values) |
1428000 |
|
Expenses: |
||
Add book values (284100+158000+153000+258000) |
853100 |
|
Excess amortizations |
25000 |
878100 |
Consolidated net income |
549900 |
Part C
Consolidated retained earnings
Retained earnings 1/1/18 (Penske) |
606000 |
Net income 2018 (above) |
549900 |
Dividends declared 2018 (Penske) |
(80000) |
Total |
$1075900 |
Stanza's retained earnings balance as of 1/118, is not included as these operations took place before the acquisition. Stanza's dividends were attributable to Penske and thus not included as they are intra-entity in nature.
Part D
Consolidated goodwill = $72000
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018 Penske $ (796, 000) Stanza $632,000) Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/18 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital 284,100 153,000 158,000 258,000 Not given 80,000 (606, 000) 408,000 974,000 646,000 60,000 (362,000) 612,000 519,00 1,004,000 Not given (570,000) (1,337,000) (600,000) ($20 par) (200,000) ($10 par) (150,000) (80,000) Note:...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Penske Revenues $ (708,000) Cost of goods sold 252,800 Depreciation expense 159,000 Investment income Not given Dividends declared 80,000 Retained earnings, 1/1/21 (758,000) Current assets 400,000 Copyrights 1,060,000 Royalty agreements 690,000 Investment in Stanza Not given Liabilities (690,000) Common stock (600,000) ($20 par) Additional paid-in capital (150,000) Note: Parentheses indicate a credit balance. Stanza $ (632,000) 158,000 210,000 @ 60,000 (206,000) 536,000 419,000...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Penske Stanza Revenues $ (832,000 ) $ (668,000 ) Cost of goods sold 296,200 167,000 Depreciation expense 202,000 306,000 Investment income Not given 0 Dividends declared 80,000 60,000 Retained earnings, 1/1/18 (768,000 ) (272,000 ) Current assets 468,000 622,000 Copyrights 916,000 587,000 Royalty agreements 704,000 1,058,000 Investment in Stanza Not given 0 Liabilities (582,000 ) (1,580,000 ) Common stock (600,000 ) ($20 par) (200,000...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: On January 1, 2018, Penske acquired all of Stanza’s outstanding stock for $816,000 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 $516,000 book value but a fair value of $600,000. As of December 31, 2018, what is the consolidated copyrights balance? For the year...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Penske Stanza Revenues $ (766,000 ) $ (724,000 ) Cost of goods sold 273,100 181,000 Depreciation expense 216,000 266,000 Investment income Not given 0 Dividends declared 80,000 60,000 Retained earnings, 1/1/18 (790,000 ) (244,000 ) Current assets 506,000 660,000 Copyrights 964,000 532,500 Royalty agreements 668,000 1,186,000 Investment in Stanza Not given 0 Liabilities (684,000 ) (1,637,500 ) Common stock (600,000 ) ($20 par) (200,000...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Penske Stanza Revenues $ (708,000 ) $ (488,000 ) Cost of goods sold 252,800 122,000 Depreciation expense 190,000 250,000 Investment income Not given 0 Dividends declared 80,000 60,000 Retained earnings, 1/1/18 (752,000 ) (394,000 ) Current assets 518,000 500,000 Copyrights 1,044,000 415,000 Royalty agreements 690,000 1,020,000 Investment in Stanza Not given 0 Liabilities (638,000 ) (1,205,000 ) Common stock (600,000 ) ($20 par) (200,000...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Penske Stanza Revenues $ (746,000 ) $ (792,000 ) Cost of goods sold 266,100 198,000 Depreciation expense 201,000 318,000 Investment income Not given 0 Dividends declared 80,000 60,000 Retained earnings, 1/1/18 (670,000 ) (214,000 ) Current assets 434,000 560,000 Copyrights 984,000 537,500 Royalty agreements 688,000 1,130,000 Investment in Stanza Not given 0 Liabilities (546,000 ) (1,517,500 ) Common stock (600,000 ) ($20 par) (200,000...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Penske Stanza Revenues $ (708,000 ) $ (488,000 ) Cost of goods sold 252,800 122,000 Depreciation expense 190,000 250,000 Investment income Not given 0 Dividends declared 80,000 60,000 Retained earnings, 1/1/18 (752,000 ) (394,000 ) Current assets 518,000 500,000 Copyrights 1,044,000 415,000 Royalty agreements 690,000 1,020,000 Investment in Stanza Not given 0 Liabilities (638,000 ) (1,205,000 ) Common stock (600,000 ) ($20 par) (200,000...
The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: $ Stanza $ (556,000) 139,000 262,000 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 (776,000) 276,600 171,000 Not given 80,000 (658,000) 510,000 1,010,000 682,000 Not given (592,000) (600,000) ($20 par) (150,000) 60,000 (394,000) 514,000 378,500 1,118,000 0 (1,241,500) (200,000) ($10 par) (80,000)...
please help with a,b,c,d 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 (726,000) 259,100 198,000 Not given 80,000 (604,000) 514,000 984,000 650,000 Not given (570,000) (600,000) ($20 par) (150,000) Stanza (768,000) 192,000 230,000 0 60,000 (252,000) 506,000 472,500 1,088,000 0...