On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,356,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet:

a.Determine the fair value in excess of book value for Prestiges acquisition date investment in Stylene.

b.Determine Prestige's December 31, 2018, Investment in Stylene balance.

c.Prepare a worksheet to determine the balances for Peregrines December 31, 2018, consolidated financial statements.

36,200 99, 000 214, 000 1,550, 000 898, 000 2,797,200 ccounts payable 1,073,200 Accounts receivable Inventory Equipment (net) Common stock Retained earnings 800, 000 924,000 2,797,200 t the acquisition date, the book values of Stylene's assets and liabilities were generally equivalent to their fair values except for the following assets: Renaining Useful Life Book Value Fair Value $1,708,000 161,000 982, 000 Equipment $1,550,000 898, 000 indefinite uring the next two years, Stylene has the following income and dividends in its own separately prepared financial reports to its parent Dividends $ 25, 000 2017 2018 $216,000 457,000 45, 000 vidends 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 $(S,280, 000) $(2,984,000) Cost of goods sold Depreciation expense Anortization expense Equity earnings in stylene 2,840,000 45, 000 183,000 397,000 2,110,000 410, 000 (2,109,000 (464,000 Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared $1,074,000 $3,410,000) (2,109,000) (464,000) 150,000 45 000 Retained earnings 12/31 (S,369,000 $ 11,493,000) Balance Shcet Cash Accounts receivable Inventory Investnent in Stylene Equipment customer list 65,500 84,500 482, 000 476,000 712,000 941,000 2,798,000 6,610,000 153,000 3,350, 000 258,000 15,298, 000 1,485, 000 924,000 3,041, 000 Goodwill $ Accounts payable Common stock $1,429,000 (8,500, 000) (800, 00O) 1,493,000 $ 3,041,000) Retained earnings, 12/31 S,369,000 Total liabilities and equity $(15,298, 000)