Homework answers / question archive / Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:    Penske  Stanza Revenues$(700,000)  $(400,000) Cost of goods sold 250,000    100,000  Depreciation expense 150,000    200,000  Investment income Not given    0  Dividends declared 80,000    60,000  Retained earnings, 1/1/18 (600,000)   (200,000) Current assets 400,000    500,000  Copyrights 900,000    400,000  Royalty agreements 600,000    1,000,000  Investment in Stanza Not given    0  Liabilities (500,000)   (1,380,000) Common stock (600,000)($20 par)  (200,000)($10 par)Additional paid-in capital (150,000)   (80,000)  Note: Parentheses indicate a credit balance

Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:    Penske  Stanza Revenues$(700,000)  $(400,000) Cost of goods sold 250,000    100,000  Depreciation expense 150,000    200,000  Investment income Not given    0  Dividends declared 80,000    60,000  Retained earnings, 1/1/18 (600,000)   (200,000) Current assets 400,000    500,000  Copyrights 900,000    400,000  Royalty agreements 600,000    1,000,000  Investment in Stanza Not given    0  Liabilities (500,000)   (1,380,000) Common stock (600,000)($20 par)  (200,000)($10 par)Additional paid-in capital (150,000)   (80,000)  Note: Parentheses indicate a credit balance

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

 Penske  Stanza Revenues$(700,000)  $(400,000) Cost of goods sold 250,000    100,000  Depreciation expense 150,000    200,000  Investment income Not given    0  Dividends declared 80,000    60,000  Retained earnings, 1/1/18 (600,000)   (200,000) Current assets 400,000    500,000  Copyrights 900,000    400,000  Royalty agreements 600,000    1,000,000  Investment in Stanza Not given    0  Liabilities (500,000)   (1,380,000) 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 $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.

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?