On January 1, 2014, Peregrine Corporate acquired 100% of the voting stock of OPsprey Corporation in exchanbge for $2,017,000 in cash and securities. On the acquisition date, Osprey had the following balance sheet:

1/1/14 Balance Sheet
Cash	23,000
AR	97,000
Inventory	140,000
Equip (net)	1,490,000
Customer lists	-
Trademarks	850,000
	2,600,000
AP	57,000
Long-term debt	993,000
	1,050,000
Common stock	800,000
Retained earnings	750,000
	1,550,000
Total liab. / OE	2,600,000

At the acquisition date, the carrying amounts of Ospreys assets and liabilities were generally eqivlaent to their fair values except for the following assets:

	Book	Fair	Remaining
Account	Value	Value	Useful life
Equipment (net)	1,490,000	1,610,000	8
Customer lists	-	160,000	4
Trademarks	850,000	900,000	indefinite

During the next two years, Osprey has the following income and dividends in its own separately prepared financial reports to its parent.

	Osprey Financials
	Net income	Dividends
2014	25,000	175,000
2015	45,000	378,000

Dividends are declared and paid in the same period. The December 31, 2015 separate financial statements for each company appear below. Parentheses indicate credit balance.

	Income Statement
		Peregrine	Osprey
Revenues		(4,200,000)	(2,200,000)
COGS		2,300,000	1,550,000
Depreciation		493,000	272,000
Amortization		105,000	-
Equity earnings in Osprey		(323,000)	-
Net income		(1,625,000)	(378,000)
	Statement of Retained Earnings
Retained earnings, 1/1		(2,900,000)	(900,000)
Net income (above)		(1,625,000)	(378,000)
Dividends declared		150,000	45,000
Retained earnings, 12/31		(4,375,000)	(1,233,000)
	Balance Sheet
Cash		430,000	88,000
AR		690,000	75,000
Inventory		890,000	420,000
Investment in Osprey		2,390,000	-
Equipment		600,000	1,400,000
Customer lists		115,000	-
Trademarks		2,500,000	850,000
Goodwill		185,000	-
Total assets		7,800,000	2,833,000
Accounts payable		(500,000)	(75,000)
Long-term debt		(1,325,000)	(725,000)
Common stock		(7,000,000)	(800,000)
Retained earnings, 12/31		(4,375,000)	(1,230,000)
Total liabilities and equity

Prepare Peregrines acquisition-date fair-value allocatedion schedule for its investment in Osprey.Answer the following:

Show how Peregrine determined its Decmber 31, 2015 Investment in Osprey balance.

Prepare a worksheet to determine the balances for Perregrines December 31, 2015, consolidated financial statements.