On January $1,2020,$ Prestige Corporation acquired $100$ percent of the voting stock of Stylene Corporation in exchange for $$2,344,500$ in cash and securities$.$ On the acquisition date, Stylene 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 Stylene$$s assets and liabilities were generally equivalent to their fair values except for the following assets:

Asset Book Value Fair Value Remaining

Useful Life

Equipment $ $1,620,000$ $ $1,836,0008$ years

Customer lists $0226,0004$ years

Trademarks $942,0001,008,500$ 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

$2020$ $ $197,000$ $ $25,000$

$2021550,00045,000$

Dividends are declared and paid in the same period. The December $31,2021,$ separate financial statements for each company follow. Parentheses indicate credit balances. $\backslash$table$[[,$Prestige,Stylene$],[$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 Stylene,$(466,500),0],[$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,$$ $49,000],[$Accounts receivable,$892,000,90,000],[$Inventory$,983,000,454,000],[$Investment in Stylene,$2,854,500,0],[$Equipment$,6,420,000,1,575,000],[$Customer lists,$155,000,0],[$Trademarks$,3,240,000,860,000],[$Goodwill$,227,000,0],[$Total assets,$ $15,275,500,$$ $3,028,000],[$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)]]$

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.