On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,341,500 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Cash 26,400 Accounts payable $ 1,854,900 Accounts receivable 102,500 Inventory 216,000 Equipment (net) 2,170,000 Common stock Trademarks 1,016,000 Retained earnings 800,000 876,000 Total assets $ 3,530,900 Total liabilities and equity $ 3,530,900 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: Asset Equipment Customer lists Book Value $ 2,170,000 Fair Value Remaining Useful Life $ 2,374,000 8 years Trademarks 1,016,000 176,000 1,068,500 4 years 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 $ 208,000 $ 25,000 2021 244,000 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. 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 $ (3,140,000) Net income (above) Dividends declared Retained earnings 12/31 $ (5,132,500) Balance Sheet Cash Accounts receivable Inventory $ 588,000 748,000 Prestige Stylene $ (5,680,000) $(2,284,000) 1,610,000 430,000 3,040,000 542,000 130,000 (174,500) $ (2,142,500) (2,142,500) 150,000 $ (244,000) $ (1,059,000) (244,000) 45,000 $(1,258,000) 75,000 89,500 913,000 616,000 Equipment Investment in Stylene Customer lists Trademarks Goodwill Total assets Accounts payable Common stock Retained earnings, 12/31 Total liabilities and equity 2,584,500 6,400,000 144,000 3,050,000 249,000 $ 14,676,500 $ (1,044,000) (8,500,000) (5,132,500) $(14,676,500) $ 3,362,000 $ (1,304,000) (800,000) (1,258,000) $(3,362,000) 1,717,500 864,000 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.