On January 1, 2014, Picante Corporation acquired 100 percent of the outstanding voting stock of Salsa Corporation for $2,023,000 cash. On the acquisition date, Salsa had the following balance sheet:

Cash	$	225,000		Accounts payable	$	176,000
Accounts receivable		110,000		Long-term debt		974,000
Land		705,000		Common stock		1,085,000
Equipment (net)		1,937,000		Retained earnings		742,000
	$	2,977,000			$	2,977,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred			$	2,023,000
Book value acquired				1,827,000
Excess fair value over book value				196,000
To in-process research and development	$	46,250
To equipment (8-year remaining life)		133,600		179,850
To goodwill (indefinite life)			$	16,150

Although at acquisition date Picante had expected $46,250 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	$	(3,615,450	)	$	(1,133,000	)
Cost of goods sold		1,647,500			667,500
Depreciation expense		553,250			183,500
Subsidiary income		(265,300	)		0
Net income	$	( 1,680,000	)	$	(282,000	)
Retained earnings 1/1/15	$	(3,240,000	)	$	(948,000	)
Net income		(1,680,000	)		(282,000	)
Dividends declared		300,000			27,125
Retained earnings 12/31/15	$	(4,620,000	)	$	(1,202,875	)
Cash	$	14,775		$	91,875
Accounts receivable		932,000			175,000
Inventory		926,000			621,000
Investment in Salsa		2,404,225			0
Land		3,432,500			722,000
Equipment (net)		5,132,500			1,935,000
Goodwill		335,000			0
Total assets	$	13,177,000		$	3,544,875
Accounts payable	$	(242,000	)	$	(409,000	)
Long-term debt		(3,165,000	)		(848,000	)
Common stock		(5,150,000	)		(1,085,000	)
Retained earnings 12/31/15		(4,620,000	)		(1,202,875	)
Total liabilities and equities	$	(13,177,000	)	$	(3,544,875	)

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.)