On January 1, 2014, Picante Corporation acquired 100 percent of the outstanding voting stock of Salsa Corporation for $2,050,000 cash. On the acquisition date, Salsa had the following balance sheet:

Cash	$	132,000		Accounts payable	$	138,000
Accounts receivable		129,000		Long-term debt		947,000
Land		771,000		Common stock		1,186,000
Equipment (net)		1,905,000		Retained earnings		666,000
	$	2,937,000			$	2,937,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred			$	2,050,000
Book value acquired				1,852,000
Excess fair value over book value				198,000
To in-process research and development	$	59,250
To equipment (8-year remaining life)		120,000		179,250
To goodwill (indefinite life)			$	18,750

Although at acquisition date Picante had expected $59,250 in future benefits from Salsas in-process research and development project, by the end of 2014, it was apparent that the research project was a failure with no future economic benefits.

On December 31, 2015, Picante and Salsa submitted the following trial balances for consolidation. There were no intra-entity payables on that date.

		Picante			Salsa
Sales	$	(3,683,500	)	$	(1,049,500	)
Cost of goods sold		1,627,500			652,500
Depreciation expense		551,500			184,000
Subsidiary income		(198,000	)		0
Net income	$	( 1,702,500	)	$	(213,000	)
Retained earnings 1/1/15	$	(3,017,500	)	$	(854,000	)
Net income		(1,702,500	)		(213,000	)
Dividends declared		300,000			29,650
Retained earnings 12/31/15	$	(4,420,000	)	$	(1,037,350	)
Cash	$	10,400		$	27,350
Accounts receivable		875,000			194,000
Inventory		963,000			600,000
Investment in Salsa		2,332,100			0
Land		3,507,500			761,000
Equipment (net)		5,115,000			1,940,000
Goodwill		327,000			0
Total assets	$	13,130,000		$	3,522,350
Accounts payable	$	(240,000	)	$	(484,000	)
Long-term debt		(3,320,000	)		(815,000	)
Common stock		(5,150,000	)		(1,186,000	)
Retained earnings 12/31/15		(4,420,000	)		(1,037,350	)
Total liabilities and equities	$	(13,130,000	)	$	(3,522,350	)

Note: Parentheses indicate a credit balance.

a.	Determine the investment in Salsa account balance as on December 31, 2015. (Amounts to be deducted should be indicated by a minus sign.)

c.

Prepare a consolidated worksheet for Picante and Salsa as of December 31, 2015. (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.)