On January 1, 2023, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $1,980,000 cash. On the acquisition date, GaugeRite had the following balance sheet:

At the acquisition date, the following allocation was prepared:

Although at acquisition date Procise had expected $44,000 in future benefits from GaugeRite’s in-process research and development project, by the end of 2023 it was apparent that the research project was a failure with no future economic benefits.

On December 31, 2024, Procise and GaugeRite submitted the following trial balances for consolidation. There were no intra-entity payables on that date.

a. Show how Procise derived its December 31, 2024, Investment in GaugeRite account balance.b. Explain the treatment of the acquired in-process research and development.c. Prepare a consolidated worksheet for Procise and GaugeRite as of December 31, 2024.

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Cash Accounts receivable... Land.... Equipment (net). $ 14,000 100,000 700,000 1,886,000 $2,700,000 Accounts payable.. Long-term debt. Common stock Retained earnings.. $ 120,000 930,000 1,000,000 650,000 $2,700,000