On January 1, 2014, Picante Corporation acquired 100 percent of the outstanding voting stock of Salsa Corporation for $1,905,000 cash. On the acquisition date, Salsa had the following balance sheet:

Determine the investment in Salsa account balance as on December 31, 2015. Part one

Prepare a consolidated worksheet for Picante and Salsa as of December 31, 2015. part two

Cash	$	47,000		Accounts payable	$	214,000
Accounts receivable		168,000		Long-term debt		963,000
Land		794,000		Common stock		1,078,000
Equipment (net)		1,903,000		Retained earnings		657,000
	$	2,912,000			$	2,912,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred			$	1,905,000
Book value acquired				1,735,000
Excess fair value over book value				170,000
To in-process research and development	$	46,750
To equipment (8-year remaining life)		102,400		149,150
To goodwill (indefinite life)			$	20,850

Although at acquisition date Picante had expected $46,750 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	$	(3,767,050	)	$	(1,097,750	)
Cost of goods sold		1,802,500			677,500
Depreciation expense		558,250			181,250
Subsidiary income		(226,200	)		0
Net income	$	( 1,632,500	)	$	(239,000	)
Retained earnings 1/1/15	$	(3,162,500	)	$	(869,000	)
Net income		(1,632,500	)		(239,000	)
Dividends declared		200,000			26,950
Retained earnings 12/31/15	$	(4,595,000	)	$	(1,081,050	)
Cash	$	129,800		$	54,550
Accounts receivable		939,000			140,000
Inventory		980,000			596,000
Investment in Salsa		2,256,700			0
Land		3,437,500			775,000
Equipment (net)		5,182,500			1,912,500
Goodwill		343,000			0
Total assets	$	13,268,500		$	3,478,050
Accounts payable	$	(201,000	)	$	(444,000	)
Long-term debt		(3,322,500	)		(875,000	)
Common stock		(5,150,000	)		(1,078,000	)
Retained earnings 12/31/15		(4,595,000	)		(1,081,050	)
Total liabilities and equities	$	(13,268,500	)	$	(3,478,050	)

Note: Parentheses indicate a credit balance.