On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,343,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Cash $ 33,000 Accounts payable $ 2,151,000 Accounts receivable 100,000 Inventory 238,000 Equipment (net) 2,420,000 Common stock 800,000 Trademarks 1,018,000 Retained earnings 858,000 $ 3,809,000 $ 3,809,000 At the acquisition date, the book values of Stylenes assets and liabilities were generally equivalent to their fair values except for the following assets: Asset Book Value Fair Value Remaining Useful Life Equipment $ 2,420,000 $ 2,619,000 8 years Customer lists 0 193,000 4 years Trademarks 1,018,000 1,107,000 indefinite During the next two years, Stylene has the following income and dividends in its own separately prepared financial reports to its parent. Net Income Dividends 2017 $ 273,000 $ 25,000 2018 463,000 45,000 Dividends are declared and paid in the same period. The December 31, 2018, separate financial statements for each company appear below. Parentheses indicate credit balances. Prestige Stylene Income Statement Revenues $ (5,700,000 ) $ (2,914,000 ) Cost of goods sold 3,050,000 2,060,000 Depreciation expense 580,000 316,000 Amortization expense 161,000 0 Equity earnings in Stylene (389,875 ) 0 Net income $ (2,298,875 ) $ (538,000 ) Statement of Retained Earnings Retained earnings 1/1 $ (3,580,000 ) $ (1,008,000 ) Net income (above) (2,298,875 ) (538,000 ) Dividends declared 150,000 45,000 Retained earnings 12/31 $ (5,728,875 ) $ (1,501,000 ) Balance Sheet Cash $ 576,000 $ 58,500 Accounts receivable 830,000 106,500 Inventory 949,000 574,000 Investment in Stylene 2,764,750 0 Equipment 6,700,000 1,635,000 Customer lists 163,000 0 Trademarks 2,520,000 850,000 Goodwill 227,000 0 Total assets $ 14,729,750 $ 3,224,000 Accounts payable $ (500,875 ) $ (923,000 ) Common stock (8,500,000 ) (800,000 ) Retained earnings, 12/31 (5,728,875 ) (1,501,000 ) Total liabilities and equity $ (14,729,750 ) $ (3,224,000 ) Determine the fair value in excess of book value for Prestiges acquisition date investment in Stylene. Determine Prestige's December 31, 2018, Investment in Stylene balance. Prepare a worksheet to determine the balances for Peregrines December 31, 2018, consolidated financial statements.