On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,356,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Cash 36,200 Accounts payable $ 1,073,200 Accounts receivable 99,000 Inventory Equipment (net) 214,000 1,550,000 Common stock Trademarks 898,000 Retained earnings 800,000 924,000 Total assets $ 2,797,200 Total liabilities and equity $ 2,797,200 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 Trademarks Book Value $1,550,000 0 898,000 Fair Value $1,708,000 161,000 982,000 Remaining Useful Life 8 years 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 2021 $216,000 464,000 $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. 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 Prestige Stylene $ (5,280,000) $(2,984,000) 2,840,000 2,110,000 410,000 545,000 183,000 (404,000) $ (2,116,000) $ (3,410,000) (2,116,000) 150,000 0 0 $ (464,000) $ (1,115,000) (464,000) 45,000 $ (1,534,000) 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 $ (5,376,000) 476,000 712,000 $ 65,500 84,500 941,000 482,000 2,846,000 0 6,610,000 153,000 3,350,000 258,000 $ 15,346,000 $ 3,041,000 $ (1,470,000) $ (707,000) 1,485,000 0 924,000 0 (8,500,000) (5,376,000) $(15,346,000) (800,000) (1,534,000) $(3,041,000) 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.