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: 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. 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.)