llison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2017, in exchange for $6,264,500 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathiass stockholders equity was $2,095,000 including retained earnings of $1,595,000.

1. Determine Allison's December 31, 2018, Investment in Mathias balance.

2. Prepare a worksheet to determine the consolidated values to be reported on Allisons financial statements.