Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2012: On

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Following are selected account balances from Penske Company and Stanza Corporation as of
December 31, 2012:

Following are selected account balances from Penske Company and Stanza

On January 1, 2012, Penske acquired all of Stanza€™s outstanding stock for $680,000 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 $440,000 book value but a fair value of $560,000.
a. As of December 31, 2012, what is the consolidated copyrights balance?
b. For the year ending December 31, 2012, what is consolidated Net Income?
c. As of December 31, 2012, what is the consolidated Retained Earnings balance?
d. As of December 31, 2012, what is the consolidated balance to be reported forgoodwill?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 978-0077431808

10th edition

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

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