PRESTIGE CORPORATION AND CONSOLIDATED SUBSIDIARY

Consolidation Worksheet

For Year December $31,2021$

$\backslash$table$[[$Accounts$,$Prestige,Stylene,Consolidation Entries,$\backslash$table$[[$Consolidated$],[$Totals$]]],[$Debit$,$Credit$],[$Income Statement$],[$Sales$,$$$(4,200,000),$$$(2,228,000),,,],[$Cost of goods sold,$2,300,000,1,570,000,,,],[$Depreciation expense,$530,000,392,000,,,],[$Amortization expense,$146,000,0,,,],[$Equity earnings in Stylene,$(204,500),0,,,],[$Net income,$$(1,428,500),$$$,(266,000),,,],[$Statement of Retained Earnings$],[$Retained earnings $\frac{1}{1},(3,090,000),(1,122,000),,,],[$Net income $($above$),(1,428,500),(266,000),,,],[$Dividends declared,$150,000,45,000,,,],[$Retained earnings $\frac{12}{31},$$$(4,368,500),$$$(1,343,000),,,],[$Balance Sheet$],[$Cash$,556,000,55,500,,,],[$Accounts receivable,$712,000,123,500,,,],[$Inventory$,922,000,600,000,,,],[$Investment in Stylene,$2,599,000,0,,,],[$Equipment $($net$),6,950,000,1,905,000,,,],[$Customer lists,$159,000,0,,,],[$Trademarks$,2,910,000,962,000,,,],[$Goodwill$,209,000,0,,,],[$Total assets,$$15,017,000,$$$,3,646,000,,,],[$Accounts payable,$(2,148,500),(1,503,000),,,],[$Common stock $-$ Prestige,$(8,500,000),,,,],[$Common stock $-$ Stylene,,$(800,000),,,],[$Retained earnings $\frac{12}{31},(4,368,500),(1,343,000),,,],[$Total liabilities and equity,$$(15,017,000),$$$(3,646,000),$$$,$$$,]]$On January $1,2020,$ Prestige Corporation acquired $100$ percent of the voting stock of Stylene Corporation in exchange for $$2,253,000$ in cash and securities$.$ On the acquisition date, Stylene had the following balance sheet:

$\backslash$table$[[$Cash$,$$$5,800,$Accounts payable,$$1,812,300$