21. Following are selected account balances from Penske Company and Stanza Corpo

21. Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2010:On January 1, 2010, 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 valueof $560,000.a. As of December 31, 2010, what is the consolidated copyrights balance?b. For the year ending December 31, 2010, what is consolidated Net Income?c. As of December 31, 2010, what is the consolidated Retained Earnings balance?d. As of December 31, 2010, what is the consolidated balance to be reported for goodwill?22. Foxx Corporation acquired all of Greenburg Company’s outstanding stock on January 1,
SolutionA) Consolidated Copyright Balance = $ 560,000(Since no information is given as to the opening balances, we assumed it to be zero.)B) Consolidated net Income = NIL(Since no information…

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