On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,220,500 in cash and securities. On the acquisition date, Stylene had the following balance sheet:

Cash	$	30,400	Accounts payable	$	1,306,400
Accounts receivable		89,000
Inventory		149,000
Equipment (net)		1,690,000	Common stock		800,000
Trademarks		946,000	Retained earnings		798,000
Total assets	$	2,904,400	Total liabilities and equity	$	2,904,400

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	$	1,690,000	$	1,813,000	8 years
Customer lists		0		170,000	4 years
Trademarks		946,000		1,033,500	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	$	191,000	$	25,000
2021		411,000		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	$	(5,540,000	)		$	(2,757,000	)
Cost of goods sold		2,970,000				1,910,000
Depreciation expense		559,000				436,000
Amortization expense		137,000				0
Equity earnings in Stylene		(353,125	)			0
Net income	$	(2,227,125	)		$	(411,000	)
Statement of Retained Earnings
Retained earnings 1/1	$	(3,800,000	)		$	(964,000	)
Net income (above)		(2,227,125	)			(411,000	)
Dividends declared		150,000				45,000
Retained earnings 12/31	$	(5,877,125	)		$	(1,330,000	)
Balance Sheet
Cash	$	558,000			$	55,000
Accounts receivable		770,000				122,000
Inventory		965,000				512,000
Investment in Stylene		2,636,750				0
Equipment		6,260,000				1,725,000
Customer lists		141,000				0
Trademarks		3,280,000				938,000
Goodwill		256,000				0
Total assets	$	14,866,750			$	3,352,000
Accounts payable	$	(489,625	)		$	(1,222,000	)
Common stock		(8,500,000	)			(800,000	)
Retained earnings, 12/31		(5,877,125	)			(1,330,000	)
Total liabilities and equity	$	(14,866,750	)		$	(3,352,000	)

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.