Following are selected account balances from Penske Company and Stanza Corporation as of
December 31, 2012:
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 paid . . . . . . . . . . . . . . . . . . . . . . 80,000
60,000
Retained earnings, 1/1/12 . . . . . . . . . . . . . . (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