On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,295,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Accounts payable $ 1,499,400 Cash Accounts receivable Inventory Equipment (net) Trademarks $ 25,400 100,000 180,000 1,850,000 1,030,000 $ 3,185,400 Common stock Retained earnings Total liabilities and equity 800,000 886,000 $ 3,185,400 Total assets 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 $ 1,850,000 0 1,030,000 Fair Value $1,975,000 203,000 1,084,000 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. 2020 2021 Net Income $ 234,000 568,000 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. Prestige Stylene $ (5,300,000) 2,850,000 545,000 181,000 (501, 625) $ (2,225,625) $ (3,348,000) 2,370,000 410,000 0 0 $ (568,000) $ (2,950,000) (2,225,625) 150,000 $ (5,025, 625) $(1,095, 000) (568,000) 45,000 $(1,618,000) 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 $ 472,000 858,000 982,000 2,894,250 6,000,000 195,000 2,790,000 192,000 $ 14,383, 250 $ (857,625) (8,500,000) (5,025,625) $(14,383,250) $ 48,000 105,000 616,000 0 2,100,000 0 880,000 0 $ 3,749,000 $(1,331,000) (800,000) (1,618,000) $ (3,749,000) 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 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 $ (5,300,000) 2,850,000 545,000 $ (3,348,000) 2,370,000 410,000 Cost of goods sold Depreciation expense Amortization expense Equity earnings in Stylene Net income 181,000 (501,625) $ (2,225,625) 0 $ (568,000) Statement of Retained Earnings Retained earnings 1/1 Net income (above) Dividends declared (2,950,000) (2,225,625) 150,000 $ (5,025,625) (1,095,000) (568,000) 45,000 $ (1,618,000) Retained earnings 12/31 Balance Sheet Cash $ 472,000 $ 48,000 Accounts receivable 858,000 105,000 Balance Sheet Cash $ Accounts receivable 48,000 105,000 616,000 0 Inventory Investment in Stylene Equipment (net) Customer lists $ 472,000 858,000 982,000 2,894,250 6,000,000 195,000 2,790,000 192,000 $ 14,383,250 2,100,000 0 Trademarks 880,000 Goodwill 0 Total assets $ 3,749,000 Accounts payable Common stock - Prestige Common stock - Stylene Retained earnings 12/31 Total liabilities and equity (857,625) (1,331,000) (8,500,000) (800,000) (5,025,625) (1,618,000) $(14,383,250) $ (3,749,000) $ 0 $ 0