On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Style Corporation in exchange for $2,361,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet:

Cash	$	30,600	Accounts payable	$	1,556,600
Accounts receivable		103,000
Inventory		197,000
Equipment (net)		2,070,000	Common stock		800,000
Trademarks		886,000	Retained earnings		930,000
	$	3,286,600		$	3,286,600

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	Book Value		Fair Value		Remaining Useful Life
Equipment	$	2,070,000	$	2,220,000	8 years
Customer lists		0		248,000	4 years
Trademarks		886,000		938,000	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	$	228,000	$	25,000
2018		366,000		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	$	(4,500,000	)		$	(2,550,000	)
Cost of goods sold		2,450,000				1,800,000
Depreciation expense		551,000				384,000
Amortization expense		202,000				0
Equity earnings in Stylene		(285,250	)			0
Net income	$	(1,582,250	)		$	(366,000	)
Statement of Retained Earnings
Retained earnings 1/1	$	(3,460,000	)		$	(1,133,000	)
Net income (above)		(1,582,250	)			(366,000	)
Dividends declared		150,000				45,000
Retained earnings 12/31	$	(4,892,250	)		$	(1,454,000	)
Balance Sheet
Cash	$	512,000			$	65,000
Accounts receivable		806,000				84,500
Inventory		938,000				492,000
Investment in Stylene		2,723,500				0
Equipment		6,860,000				1,650,000
Customer lists		197,000				0
Trademarks		2,930,000				946,000
Goodwill		205,000				0
Total assets	$	15,171,500			$	3,237,500
Accounts payable	$	(1,779,250	)		$	(983,500	)
Common stock		(8,500,000	)			(800,000	)
Retained earnings, 12/31		(4,892,250	)			(1,454,000	)
Total liabilities and equity	$	(15,171,500	)		$	(3,237,500	)

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 a worksheet to determine the balances for Peregrine’s December 31, 2018, consolidated financial statements.