On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,347,500 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Cash $ 24,800 Accounts payable $ 1,891,800 Accounts receivable 102,000 Inventory 223,000 Equipment (net) 2,310,000 Common stock 800,000 Trademarks 920,000 Retained earnings 888,000 Total assets $ 3,579,800 Total liabilities and equity $ 3,579,800 At the acquisition date, the book values of Stylenes assets and liabilities were generally equivalent to their fair values except for the following assets: Asset Book Value Fair Value Remaining Useful Life Equipment $ 2,310,000 $ 2,483,000 8 years Customer lists 0 234,000 4 years Trademarks 920,000 1,009,500 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 $ 240,000 $ 25,000 2021 238,000 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 Income Statement Revenues $ (4,780,000 ) $ (2,326,000 ) Cost of goods sold 2,590,000 1,640,000 Depreciation expense 552,000 448,000 Amortization expense 116,000 0 Equity earnings in Stylene (157,875 ) 0 Net income $ (1,679,875 ) $ (238,000 ) Statement of Retained Earnings Retained earnings 1/1 $ (3,570,000 ) $ (1,103,000 ) Net income (above) (1,679,875 ) (238,000 ) Dividends declared 150,000 45,000 Retained earnings 12/31 $ (5,099,875 ) $ (1,296,000 ) Balance Sheet Cash $ 542,000 $ 52,500 Accounts receivable 736,000 101,000 Inventory 929,000 558,000 Investment in Stylene 2,595,250 0 Equipment 6,010,000 1,740,000 Customer lists 168,000 0 Trademarks 3,150,000 994,000 Goodwill 260,000 0 Total assets $ 14,390,250 $ 3,445,500 Accounts payable $ (790,375 ) $ (1,349,500 ) Common stock (8,500,000 ) (800,000 ) Retained earnings, 12/31 (5,099,875 ) (1,296,000 ) Total liabilities and equity $ (14,390,250 ) $ (3,445,500 ) Determine the fair value in excess of book value for Prestiges acquisition date investment in Stylene. Determine Prestige's December 31, 2021, Investment in Stylene balance. Prepare a worksheet to determine the balances for Prestiges December 31, 2021, consolidated financial statements. Cash $ 24,800 Accounts payable $ 1,891,800 Accounts receivable 102,000 Inventory 223,000 Equipment (net) 2,310,000 Common stock 800,000 Trademarks 920,000 Retained earnings 888,000 Total assets $ 3,579,800 Total liabilities and equity $ 3,579,800.