Check my work Check My Work button is now enabledItem 2 Item 2 25 points Item Skipped Following are selected account balances from Penske Company and…

Check my work Check My Work button is now enabledItem 2

Item 2 25 points Item Skipped

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)($10 par)Additional paid-in capital (150,000)   (80,000) 

Note: Parentheses indicate a credit balance.

On January 1, 2018, Penske acquired all of Stanza’s outstanding stock for $780,000 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 $592,000 book value but a fair value of $760,000.

  1. As of December 31, 2018, what is the consolidated copyrights balance?
  2. For the year ending December 31, 2018, what is consolidated net income?
  3. As of December 31, 2018, what is the consolidated retained earnings balance?
  4. As of December 31, 2018, what is the consolidated balance to be reported for goodwill?

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