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On January 1, 2020 Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2 281,500 in cash and securities.

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On January 1, 2020 Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2 281,500 in cash and securities. On the acquisition date, Stylene had the following balance sheet Accounts payable $ 1,641,600 Cash Accounts receivable Inventory Equipment (net Trademarks Total assets S 40.600 124.000 141,000 1.990,000 1040,000 $ 3.335,600 Common stock Retained eamings Total abilities and equity 800.000 894000 3,335 600 5 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 $ 1,990,000 0 1.040 000 Fair Value 5.2. 145.000 196.000 1.121 500 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 $ 217,000 $ 25,000 392 000 45.000 2021 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 S (4,360,000) 2,380,000 544,000 135,000 1323 625 5 (1624 625) S (2.914,000) 2.000.000 462,000 0 0 5 (392.000) $ (3.490,000 (1.624 625) 150.000 $ (4.964 625) $ (1.086.000) (392 000) 45.000 $ (1.433.000) 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 abilities and equity S 488.000 802,000 891.000 2 683.750 6.120.000 141.000 3,390,000 262 000 $ 14,777 750 $ (1.313,125) (8.500.000 (4.964025 $(14.777.750) $ 49,500 77.000 478,000 0 2.100.000 0 936.000 0 $ 3,640,500 $ (1,407 500) (800.000) (1.433.000 $(3.640,500) 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

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