Allison corporation acquired all of the outstanding voting stock of mathias, inc., on january 1, 2017, in exchange for $6,244,000 in cash. allison intends to maintain mathias as a wholly owned subsidiary. both companies have december 31 fiscal year-ends. at the acquisition date, mathias’s stockholders’ equity was $2,090,000 including retained earnings of $1,590,000.at the acquisition date, allison prepared the following fair value allocation schedule for its newly acquired subsidiary: consideration transferred $ 6,244,000 mathias stockholders' equity 2,090,000 excess fair over book value $ 4,154,000 to unpatented technology (8-year remaining life) $ 944,000 to patents (10-year remaining life) 2,680,000 to increase long-term debt (undervalued, 5-year remaining life) (190,000 ) 3,434,000 goodwill $ 720,000 post-acquisition, allison employs the equity method to account for its investment in mathias. during the two years following the business combination, mathias reports the following income and dividends: income dividends2017 $ 446,250 $ 25,0002018 892,500 50,000no asset impairments have occurred since the acquisition date. individual financial statements for each company as of december 31, 2018, appear below. parentheses indicate credit balances. dividends declared were paid in the same period. allison mathiasincome statement sales $ (6,760,000 ) $ (3,990,000 )cost of goods sold 4,752,000 2,558,500 depreciation expense 965,000 331,000 amortization expense 475,000 130,000 interest expense 91,000 78,000 equity earnings in mathias (544,500 ) 0 net income $ (1,021,500 ) $ (892,500 )statement of retained earnings retained earnings 1/1 $ (5,520,000 ) $ (2,011,250 )net income (above) (1,021,500 ) (892,500 )dividends declared 560,000 50,000 retained earnings 12/31 $ (5,981,500 ) $ (2,853,750 )balance sheet cash $ 102,000 $ 170,000 accounts receivable 1,040,000 270,000 inventory 1,880,000 875,000 investment in mathias 6,811,750 0 equipment (net) 3,880,000 2,115,000 patents 140,000 0 unpatented technology 2,215,000 1,540,000 goodwill 488,000 0 total assets $ 16,556,750 $ 4,970,000 accounts payable $ (1,375,250 ) $ (416,250 )long-term debt $ (1,000,000 ) $ (1,200,000 )common stock (8,200,000 ) (500,000 )retained earnings 12/31 (5,981,500 ) (2,853,750 )total liabilities and equity $ (16,556,750 ) $ (4,970,000 )required: determine allison's december 31, 2018, investment in mathias balance. investment balance at 12/31/2018prepare a worksheet to determine the consolidated values to be reported on allison’s financial statements. prepare a worksheet to determine the consolidated values to be reported on allison’s financial statements. (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. amounts in the debit and credit columns should be entered as positive. negative amounts for the consolidated totals column should be entered with a minus sign.)