On January 1, 2023, Palo Verde Corporation acquired 100 percent of the voting stock of Silverstone Corporation in exchange for $2,344,500 in cash and securities. On the acquisition date, Silverstone had the following balance sheet:

Cash	$ 28,000	Accounts payable	$ 1,199,000
Accounts receivable	99,000
Inventory	168,000
Equipment (net)	1,620,000	Common stock	800,000
Trademarks	942,000	Retained earnings	858,000
Total assets	$ 2,857,000	Total liabilities and equity	$ 2,857,000

At the acquisition date, the book values of Silverstones assets and liabilities were generally equivalent to their fair values except for the following assets:

Asset	Book Value	Fair Value	Remaining Useful Life
Equipment	$ 1,620,000	$ 1,836,000	8 years
Royalty agreements	0	226,000	4 years
Trademarks	942,000	1,008,500	indefinite

During the next two years, Silverstone has the following income and dividends in its own separately prepared financial reports to its parent.

Year	Net Income	Dividends
2023	$ 197,000	$ 25,000
2024	550,000	45,000

Dividends are declared and paid in the same period. The December 31, 2024, separate financial statements for each company follow. Parentheses indicate credit balances.

Items	Palo Verde	Silverstone
Income Statement
Revenues	$ (5,960,000)	$ (3,390,000)
Cost of goods sold	3,180,000	2,400,000
Depreciation expense	536,000	440,000
Amortization expense	177,000	0
Equity earnings in Silverstone	(466,500)	0
Net income	$ (2,533,500)	$ (550,000)
Statement of Retained Earnings
Retained earnings, 1/1	$ (3,570,000)	$ (1,030,000)
Net income (above)	(2,533,500)	(550,000)
Dividends declared	150,000	45,000
Retained earnings, 12/31	$ (5,953,500)	$ (1,535,000)
Balance Sheet
Cash	$ 504,000	$ 49,000
Accounts receivable	892,000	90,000
Inventory	983,000	454,000
Investment in Silverstone	2,854,500	0
Equipment	6,420,000	1,575,000
Royalty agreements	155,000	0
Trademarks	3,240,000	860,000
Goodwill	227,000	0
Total assets	$ 15,275,500	$ 3,028,000
Accounts payable	$ (822,000)	$ (693,000)
Common stock	(8,500,000)	(800,000)
Retained earnings, 12/31	(5,953,500)	(1,535,000)
Total liabilities and equity	$ (15,275,500)	$ (3,028,000)

Required:

Determine the fair value in excess of book value for Palo Verdes acquisition date investment in Silverstone.

Determine Palo Verde's December 31, 2024, Investment in Silverstone balance.

Prepare a worksheet to determine the balances for Palo Verde's December 31, 2024, consolidated financial statements.

a. Determine the fair value in excess of book value for Palo Verde's acquisition date investment in Silverstone. b. Determine Palo Verde's December 31, 2024, Investment in Silverstone balance. c. Prepare a worksheet to determine the balances for Palo Verde's December 31, 2024, consolidated financial statements Complete this question by entering your answers in the tabs below. Determine the fair value in excess of book value for Palo Verde's acquisition date investment in Silverstone. a. Determine the fair value in excess of book value for Palo Verde's acquisition date investment in Silverstone. b. Determine Palo Verde's December 31, 2024, Investment in Silverstone balance. c. Prepare a worksheet to determine the balances for Palo Verde's December 31, 2024, consolidated financial statements Complete this question by entering your answers in the tabs below. Determine Palo Verde's December 31, 2024, Investment in Silverstone balance. Prepare a worksheet to determine the balances for Palo Verde's December 31, 2024, consolidated financial statements. Note: For accounts where multiple consolidation entries are required,combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values