On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,244,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Accounts payable $ 1,799,000 Cash Accounts receivable Inventory Equipment (net) Trademarks Total assets $ 23,000 125,000 181,000 2,180,000 890,000 $ 3,399,000 Common stock 800,000 Retained earnings 800,000 Total liabilities and equity $ 3,399,000 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: Remaining Useful Life Book Value $ 2,180,000 Asset Equipment Customer lists Trademarks Fair Value $ 2,362,000 213,000 943,000 8 years 4 years indefinite 890,000 During the next two years, Stylene has the following income and dividends in its own separately prepared financial reports to its parent. 2020 2021 Net Income $ 260,000 742,000 Dividends $ 25,000 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. Stylene Prestige $ (4,860,000) 2,630,000 506,000 167,000 (666,000) $ (2,223,000) $(3,502,000) 2,480,000 280,000 (742,000) $ (3,650,000) (2,223,000) 150,000 $ (5,723,000) $(1,035,000) (742,000) 45,000 $(1,732,000) 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 $ 65,000 106,500 464,000 0 1,672,500 940,000 $ 540,000 714,000 938,000 3,024,000 6,280,000 143,000 2,810,000 199,000 $ 14,648,000 $ (425,000 (8,500,000) (5,723,000) $(14,648,000) $ 3,248,000 $ (716,000) (800,000) (1,732,000) $ (3,248,000) a. Determine the fair value in excess of book value for Prestige's acquisition date investment in Stylene. b. Determine Prestige's December 31, 2021, Investment in Stylene balance. c. Prepare a worksheet to determine the balances for Prestige's December 31, 2021, consolidated financial statements. Complete this question by entering your answers in the tabs 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 a. Determine the fair value in excess of book value for Prestige's acquisition date investment in Stylene. b. Determine Prestige's December 31, 2021, Investment in Stylene balance. c. Prepare a worksheet to determine the balances for Prestige's December 31, 2021, consolidated financial statements. Complete this question by entering your answers in the tabs below. Required A. Required B Required C Determine Prestige's December 31, 2021, Investment in Stylene balance. Amounts Fair value at 1/1/20 Stylene dividends since acquisition Post-acquisition earnings less excess amortization Investment in Stylene PRESTIGE CORPORATION AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year December 31, 2021 Consolidation Entries Accounts Prestige Stylene Debit Credit Consolidated Totals Income Statement Sales Cost of goods sold Depreciation expense Amortization expense Equity earnings in Stylene Net income $ (4,860,000) $ (3,502,000) 2,630,000 2,480,000 506,000 280,000 167,000 0 (666,000) 0 $ (2,223,000) $ (742,000) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 (3,650,000) (1,035,000) (2,223,000) (742,000) 150,000 45,000 $ (5,723,000) $ (1,732,000) Balance Sheet Cash Accounts receivable Inventory Investment in Stylene Equipment (net) Customer lists Trademarks Goodwill Total assets $ 540,000 $ 65,000 714,000 106,500 938,000 464,000 3,024,000 0 6,280,000 1,672,500 143,000 0 2,810,000 940,000 199,000 0 $ 14,648,000 $ 3,248,000 (716,000) Accounts payable Common stock - Prestige Common stock - Stylene (425,000) (8,500,000) (800,000)