statements. 27. On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Stylene Cor- poration in exchange for $2,030,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet: $1,050,000 Cash Accounts receivable Inventory Equipment (net) Trademarks $ 23,000 Accounts payable 97.000 140.000 1,490,000 Common stock 850,000 Retained earnings $2,600.000 800,000 750,000 $2,600.000 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 Remaining Useful Life Asset Book Value $1,490,000 Equipment Customer lists Trademarks Fair Value $1,610,000 160.000 900.000 0- 8 years 4 years Indefinite 850,000 During the next two years, Stylene has the following income and dividends in its own separately prepared financial reports to its parent. Net Income 2017 2018 Net Income $175.000 375,000 Dividends $25.000 45.000 $25 Dividends are declared and paid in the same period. The December 31, 2018, separate financial statements for each company appear below. Parentheses indicate credit balances. Income Statement Prestige Revenues Cost of goods sold Depreciation expense Amortization expense Equity earnings in Stylene Net income Stylene $ 12.200.000 1.550.000 275,000 $ 4.200,000) 2,300,000 495.000 105.000 (320.000 $ (1.620.000 $ 375,000 $ 12,900,000) (1.620,000) 150.000 $ 14,370,000 $ 1900,000) (375.000) 45.000 $ (1.230.000 $ 35,000 75,000 420,000 Statement of Retained Earnings Retained earnings 1/1 Not income (above) Dividends declared Retained earnings 12/31 Balance Sheet Casti 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 $ 430,000 693,000 890,000 2.400.000 6,000,000 115,000 2.500.000 172.000 $ 13,200,000 $ (330,000) 18.500,000) 14,370,000 $(13,200,000 1,400,000 -0- 850,000 $ 2.780,000 $ (750.000 (800,000) (1.230.000 $12.780,000 b Prepare Prestige's acquisition-date fair-value allocation schedule for its investment in Stylene Show how Prestige determined its December 31, 2018, Investment in Stylene balance Prepare a worksheet to determine the balances for Prestige's December 31, 2018, consolidated financial statements