n January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,346,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Cash $ 42,800 Accounts payable $ 1,519,300 Accounts receivable 141,500 Inventory 141,000 Equipment (net) 1,960,000 Common stock 800,000 Trademarks 936,000 Retained earnings 902,000 $ 3,221,300 $ 3,221,300 At the acquisition date, the book values of Stylenes assets and liabilities were generally equivalent to their fair values except for the following assets: Asset Book Value Fair Value Remaining Useful Life Equipment $ 1,960,000 $ 2,104,000 8 years Customer lists 0 210,000 4 years Trademarks 936,000 1,014,000 indefinite 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 $ 226,000 $ 25,000 2018 550,000 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. Prestige Stylene Income Statement Revenues $ (5,200,000 ) $ (2,844,000 ) Cost of goods sold 2,800,000 2,010,000 Depreciation expense 507,000 284,000 Amortization expense 113,000 0 Equity earnings in Stylene (479,500 ) 0 Net income $ (2,259,500 ) $ (550,000 ) Statement of Retained Earnings Retained earnings 1/1 $ (2,990,000 ) $ (1,103,000 ) Net income (above) (2,259,500 ) (550,000 ) Dividends declared 150,000 45,000 Retained earnings 12/31 $ (5,099,500 ) $ (1,608,000 ) Balance Sheet Cash $ 468,000 $ 72,500 Accounts receivable 798,000 75,000 Inventory 936,000 584,000 Investment in Stylene 2,911,000 0 Equipment 6,470,000 1,845,000 Customer lists 129,000 0 Trademarks 3,020,000 1,032,000 Goodwill 271,000 0 Total assets $ 15,003,000 $ 3,608,500 Accounts payable $ (1,403,500 ) $ (1,200,500 ) Common stock (8,500,000 ) (800,000 ) Retained earnings, 12/31 (5,099,500 ) (1,608,000 ) Total liabilities and equity $ (15,003,000 ) $ (3,608,500 ) Determine the fair value in excess of book value for Prestiges acquisition date investment in Stylene. Determine Prestige's December 31, 2018, Investment in Stylene balance. Prepare a worksheet to determine the balances for Peregrines December 31, 2018, consolidated financial statements.

1) Determine the fair value in excess of book value for Prestiges acquisition date investment in Stylene.

2)Determine Prestige's December 31, 2018, Investment in Stylene balance.

3) Prepare a worksheet to determine the balances for Prestige's December 31, 2018, consolidated financial statements. (For accounts where multiple consolidation entries are required,combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Consolidated Totals column should be entered with a minus sign.)