On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,347,500 in cash and securities. On the acquisition date, Stylene had the following balance sheet:

Cash	$	24,800	Accounts payable	$	1,891,800
Accounts receivable		102,000
Inventory		223,000
Equipment (net)		2,310,000	Common stock		800,000
Trademarks		920,000	Retained earnings		888,000
Total assets	$	3,579,800	Total liabilities and equity	$	3,579,800

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	$	2,310,000	$	2,483,000	8 years
Customer lists		0		234,000	4 years
Trademarks		920,000		1,009,500	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
2020	$	240,000	$	25,000
2021		238,000		45,000

Dividends are declared and paid in the same period. The December 31, 2021, separate financial statements for each company follow. Parentheses indicate credit balances.

	Prestige				Stylene
Income Statement
Revenues	$	(4,780,000	)		$	(2,326,000	)
Cost of goods sold		2,590,000				1,640,000
Depreciation expense		552,000				448,000
Amortization expense		116,000				0
Equity earnings in Stylene		(157,875	)			0
Net income	$	(1,679,875	)		$	(238,000	)
Statement of Retained Earnings
Retained earnings 1/1	$	(3,570,000	)		$	(1,103,000	)
Net income (above)		(1,679,875	)			(238,000	)
Dividends declared		150,000				45,000
Retained earnings 12/31	$	(5,099,875	)		$	(1,296,000	)
Balance Sheet
Cash	$	542,000			$	52,500
Accounts receivable		736,000				101,000
Inventory		929,000				558,000
Investment in Stylene		2,595,250				0
Equipment		6,010,000				1,740,000
Customer lists		168,000				0
Trademarks		3,150,000				994,000
Goodwill		260,000				0
Total assets	$	14,390,250			$	3,445,500
Accounts payable	$	(790,375	)		$	(1,349,500	)
Common stock		(8,500,000	)			(800,000	)
Retained earnings, 12/31		(5,099,875	)			(1,296,000	)
Total liabilities and equity	$	(14,390,250	)		$	(3,445,500	)

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

Determine Prestige's December 31, 2021, Investment in Stylene balance.

Prepare a worksheet to determine the balances for Prestiges December 31, 2021, consolidated financial statements.