On January 1, 2020, Peregrine Corporation acquired 100 percent of the voting stock of Sprano Corporation in exchange for $2,017,000 in cash and securities. Sprano continues its separate legal existence as a wholly owned subsidiary of Peregrine with independent accounting records. On the acquisition date, Sprano had the following balance sheet:

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

Peregrine applies the Equity method to maintain its investment account. Separate financial statements for each company for the year ended December 31, 2021 are presented in the first three columns of the consolidation worksheet provided. Parentheses indicate credit balances.

Prepare Peregrine's acquisition-date fair-value allocation for its investment in Sprano. Determine the book value, excess value, and goodwill components of the investment. Then, calculate the annual amortization of the excess value.

Accounts payable Long-term debt 57,000 993,000 Cash Accounts receivable Inventory Equipment (net) Trademarks 23,000 97,000 140,000 1,490,000 850,000 2,600,000 Common stock Retained earnings 800,000 750,000 2,600,000 $ $ Remaining Useful Life 8 years Asset Equipment Customer lists Trademarks Book Value Fair Value $ 1,490,000 $ 1,610,000 160,000 850,000 900,000 4 years indefinite Peregrine Sprano Sales Cost of goods sold Depreciation expense Amortization expense Equity earnings in Sprano Net income $ (4,200,000) $ (2,200,000) 2,300,000 1,550,000 493,000 272,000 105,000 (323,000) $ (1,625,000) $ (378,000) Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 $ (2,900,000) $ (900,000) (1,625,000) (378,000) 150,000 45,000 $ (4,375,000) $ (1,233,000) $ Cash Accounts receivable Inventory Investment in Sprano Equipment (net) Customer lists Trademarks Goodwill Total assets $ 430,000 690,000 890,000 2,390,000 6,000,000 115,000 2,500,000 185,000 $ 13,200,000 88,000 75,000 420,000 -0- 1,400,000 -0- 850,000 -0- 2,833,000 $ Accounts payable Long-term debt Common stock - Peregrine Common stock - Sprano Retained earnings 12/31 Total liabilities and equity $ (500,000) $ (75,000) (1,325,000) (725,000) (7,000,000) (800,000) (4,375,000) (1,233,000) $ (13,200,000) $ (2,833,000)