On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,219,500 in cash and securities. On the acquisition date, Stylene had the following balance sheet:

Cash						$	28,800	Accounts payable	$	1,982,800
Accounts receivable							138,000
Inventory							196,000
Equipment (net)							2,370,000	Common stock		800,000
Trademarks							924,000	Retained earnings		874,000
						$	3,656,800		$	3,656,800

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						$		2,370,000	$		2,528,000	8 years
Customer lists								0			184,000	4 years
Trademarks								924,000			974,500	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					$		186,000	$		25,000
2018							386,000			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								$			(6,040,000	)		$			(2,578,000	)
Cost of goods sold											3,220,000						1,820,000
Depreciation expense											519,000						360,000
Amortization expense											120,000						0
Equity earnings in Stylene											(320,250	)					0
Net income								$			(2,501,250	)		$			(398,000	)
Statement of Retained Earnings
Retained earnings 1/1								$			(3,320,000	)		$			(1,024,000	)
Net income (above)											(2,501,250	)					(398,000	)
Dividends declared											150,000						45,000
Retained earnings 12/31								$			(5,671,250	)		$			(1,377,000	)
Balance Sheet
Cash								$			628,000			$			57,500
Accounts receivable											866,000						78,000
Inventory											941,000						590,000
Investment in Stylene											2,579,000						0
Equipment											6,500,000						2,055,000
Customer lists											119,000						0
Trademarks											3,270,000						852,000
Goodwill											220,000						0
Total assets								$			15,123,000			$			3,632,500
Accounts payable								$			(951,750	)		$			(1,455,500	)
Common stock											(8,500,000	)					(800,000	)
Retained earnings, 12/31											(5,671,250	)					(1,377,000	)
Total liabilities and equity								$			(15,123,000	)		$			(3,632,500	)

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.