a | Consolidated Copyright Balance | $1,599,000 |
b | Consolidated Net Income | $2,143,800 |
c | Consolidated Retained Earnings Balance | $2,821,800 |
d | Consolidated Balance to Be reported for good will | $127,000 |
Explanation;
a)
Fair Value of copy right | $654,000 |
Less: Book Value of Copy Right | $510,000 |
Allocation of Copy Right | $144,000 |
Number of Years | 6 |
Excess Amortization 2021 | $24,000 |
Consolidated Copy Right Balance
Penske Book Value of Copy Right | $1,060,000 |
Stanza Book Value of Copy Right | $419,000 |
Add: Allocation of Copy Right | $144,000 |
Less: Excess Amortization | $(24,000) |
Consolidated Copy Right Balance | $1,599,000 |
b) Consolidated Net Income
Consolidated Revenue ($708,000+$632,000) | $1,340,000 | |
Less; | ||
Consolidated Exp ($252,800+$158,000+$159,000+$210,000) | $779,800 | |
Excess Amortization | $24,000 | |
Total Expenses | $803,800 | |
Consolidated Net Income | $2,143,800 |
c) Consolidated Retained Earnings Balance
Retained Earnings of Penske as on 1/1/21 | $758,000 |
Add: Net Income | $2,143,800 |
Less: Dividend Declared | $(80,000) |
Consolidated Retained Earnings 31/12/2021 | $2,821,800 |
d) Consolidated Balance to Be reported for good will
Fair Value of Stanza acquisition | $757,000 | |
Less: Book Value of Stanza; | ||
Beginning Retained Earnings | $206,000 | |
Common Stock | $200,000 | |
Additional paid in Capital | $80,000 | $486,000 |
Fair Value in Excess of Book Value | $271,000 | |
Less: Excess fair value allocated to copy right | $(144,000) | |
Good Will | $127,000 |
The following are selected account balances from Penske Company and Stanza Corporation as of December 31,...
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 $ (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 $ (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: $ 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)...
Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Stanza (632,000) 158,000 258,000 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 Penske (796, 000) 284,100 153, eee Not given 80,000 (686,000) 408, eee 974,000 646,000 Not given (570,000) (600,000) ($20 par) (150,000) 60,000 (362,000) 612, eee 519, eee 1,004,000 (1,337, eee) (200,000) ($10...
Explanation Show my answ! 14 Problem 3-23 (LO 3-1, 3-4) 2.31 ints awarded Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018: Scored Stanza (632,000 158.000 210,000 eBook Print 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 Penske (708,000) 252.800 159,000 Not given 80.000 (758,000) 400,000 1,060,000 690,000 Not given (690,000) (600,000) ($20...
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...
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 $ (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...