Reference no: EM132610652

Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:

                                                                           Penske                                     Stanza

Revenues                                                 $(795,000)                         $(700,000)

Cost of goods sold                                          283,250                          175,000

Depreciation expense                                           184,000                        302,000

Investment income Not given 0

Dividends declared                                                    80,000                           60,000

Retained earnings, 1/1/18                                         (732,000)                             (268,000)

Current assets                                                            510,000                                 668,000

Copyrights                                                                1,072,000                                     558,500

Royalty agreements                                                       722,000                                  1,116,000

Investment in Stanza Not given 0

Liabilities                                                                        (562,000)                                   (1,631,500)

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 $818,000 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 $632,000 book value but a fair value of $746,000.

Question 1: As of December 31, 2018, what is the consolidated copyrights balance?

Question 2: For the year ending December 31, 2018, what is consolidated net income?

Question 3: As of December 31, 2018, what is the consolidated retained earnings balance?

Question 4: As of December 31, 2018, what is the consolidated balance to be reported for goodwill?