On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,030,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet:

At the acquisition date, the book values of Stylene's assets and liabilities were generally equivalent to their fair values except for the following assets:

During the next two years, Stylene has the following income and dividends in its own separately prepared financial reports to its parent.
_____________ Net Income ___________ Dividends
2017 .............. $175,000 .................... $25,000
2018 ............... 375,000 ..................... 45,000
Dividends are declared and paid in the same period. The December 31, 2018, separate financial statements for each company appear below. Parentheses indicate credit balances.

a. Prepare Prestige's acquisition-date fair-value allocation schedule for its investment in Stylene.
b. Show how Prestige determined its December 31, 2018, Investment in Stylene balance.
c. Prepare a worksheet to determine the balances for Prestige's December 31, 2018, consolidated financial statements?

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$ 23,000 Accounts payable$1,050,000 Cash Accounts receivable Inventory Equipment (net) Trademarks 97,000 140,000 1,490,000 Common stock 800,000 750,000 $2,600,000 850,000 Retained earnings 2,0000 Remalning Useful Life Asset Fair Value Equipment Customer lists Trademarks Book Value $1,490,000 850,000 $1,610,000 160,000 900,000 4 years Incteini Prestige Stylene Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Equity earnings in Stylene $ (4,200,000) 2,300,000 495,000 105,000 (320,000) $ (2,200,000) 1,550,000 275,000 Net income $(1,620 $ (375 Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared $ (2,900,000) (1,620,000) 150,000 $ (900,000) (375,000) 45,000 $ (4.370 $ (1,230 Retained earnings 12/31 Balance Sheet Cash Accounts receivable Inventory Investment in Stylene Equipment Customer lists Trademarks Goodwil $35,000 75,000 420,000 $430,000 693,000 890,000 2,400,000 6,000,000 115,000 2,500,000 172,000 $13,200,000 1,400,000 0- 850,000 $ 2,780,000 Total assets Accounts pay Common stock Retained earnings 12/31 $ (330,000) (8,500,000) $ (750,000) (800,000) able 4,370 13,200 1,230 $ (2,780 Total liabilities and equity