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: Accounts payable $ 2,151,000 Cash Accounts receivable Inventory Equipment (net) Trademarks $ 33,000 100,000 238,000 2,420,000 1,018,000 $ 3,809,000 Common stock Retained earnings 800,000 858,000 $ 3,809,000 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: Asset Equipment Customer lists Trademarks Book Value $ 2, 420,000 Fair Value $2,619,000 193,000 1,107,000 Remaining Useful Life 8 years 4 years indefinite 1,018,000 During the next two years, Stylene has the following income and dividends in its own separately prepared financial reports to its parent 2017 2018 Net Income Dividends $ 273,000 $25,000 538,000 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 $ (2,914,000) 2,060,000 316,000 $ (5,700,000) 3,050,000 580,000 161,000 (464,875) $ (2,373, 875) $ (538,000) $ (3,580,000) (2,373, 875) 150,000 $ (5,803, 875) $(1,106,000) (538,000) 45,000 $ (1,599,000) Income Statement Revenues Cost of goods sold Depreciation expense Amortization expense Equity earnings in Stylene Net income Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 Balance Sheet Cash Accounts receivable Inventory Investment in Stylene Equipment Customer lists Trademarks Goodwill Total assets Accounts payable Common stock Retained earnings, 12/31 Total liabilities and equity $ 58,500 106,500 574,000 1,635,000 850,000 576,000 830,000 949,000 2,937, 750 6,700,000 163,000 2,520,000 227,000 $ 14,902,750 $ (598,875) (8,500,000) (5,803,875) $(14,902,750) $ 3, 224,000 $ (825,000) (800,000) (1,599,000) $ (3, 224,000) a. Determine the fair value in excess of book value for Prestige's 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 Peregrine's December 31, 2018, consolidated financial statements. Complete this question by entering your answers in the tads below. Required A Required B Required C Determine the fair value in excess of book value for Prestige's acquisition date investment in Stylene. Fair value in excess of book value Required A Required B > Required A Required B Required C Determine Prestige's December 31, 2018, Investment in Stylene balance. Investment in Stylene $ (2,914,000) 2,060,000 316,000 Sales Cost of goods sold Depreciation expense Amortization expense Equity earnings Net income $ (5,700,000) 3,050,000 580,000 161,000 (464,875) $ (2,373,875) 01 $ (538,000) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (3,580,000) (2,373,875) 150,000 $ (5,803,875) (1,106,000) (538,000) 45,000 $ (1,599,000) $ 58,500 106,500 574,000 Balance Sheet Cash Accounts receivable Inventory Investment in Stylene Equipment (net) Customer lists Trademarks Goodwill Total assets 576,000 830,000 949,000 2,937,750 6,700,000 163,000 2,520,000 227,000 $ 14,902,750 1,635,000 850,000 $ 3,224,000 (825,000) Accounts payable Common stock - Prestige Common stock - Stylene (598,875) (8,500,000) (800,000)|