On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,346,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet:

Cash$42,800Accounts payable$1,519,300Accounts receivable141,500Inventory141,000Equipment (net)1,960,000Common stock800,000Trademarks936,000Retained earnings902,000$3,221,300$3,221,300

At the acquisition date, the book values of Stylene's assets and liabilities were generally equivalent to their fair values except for the following assets:

AssetBook ValueFair ValueRemaining

Useful LifeEquipment$1,960,000$2,104,0008 yearsCustomer lists0210,0004 yearsTrademarks936,0001,014,000indefinite

During the next two years, Stylene has the following income and dividends in its own separately prepared financial reports to its parent.

Net IncomeDividends2017$226,000$25,0002018550,00045,000

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.

PrestigeStyleneIncome StatementRevenues$(5,200,000)$(2,844,000)Cost of goods sold2,800,0002,010,000Depreciation expense507,000284,000Amortization expense113,0000Equity earnings in Stylene(479,500)0Net income$(2,259,500)$(550,000)Statement of Retained EarningsRetained earnings 1/1$(2,990,000)$(1,103,000)Net income (above)(2,259,500)(550,000)Dividends declared150,00045,000Retained earnings 12/31$(5,099,500)$(1,608,000)Balance SheetCash$468,000$72,500Accounts receivable798,00075,000Inventory936,000584,000Investment in Stylene2,911,0000Equipment6,470,0001,845,000Customer lists129,0000Trademarks3,020,0001,032,000Goodwill271,0000Total assets$15,003,000$3,608,500Accounts payable$(1,403,500)$(1,200,500)Common stock(8,500,000)(800,000)Retained earnings, 12/31(5,099,500)(1,608,000)Total liabilities and equity$(15,003,000)$(3,608,500)

1. Determine the fair value in excess of book value for Prestige's acquisition date investment in Stylene.
2. Determine Prestige's December 31, 2018, Investment in Stylene balance.
3. Prepare worksheet to determine the balances for Peregrine's December 31, 2018, consolidated financial statements