2010 c. If the parent uses the equity method, what consolidation entries would be used on worksheet? 33. On January 1, 2018, Brooks Corporation exchanged $1.183.000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to ST.105,000. Chandler's individual assets and liabilities had fair values equal to their respec tive book values except for the patented technology account, which was undervalued by $204,000 with an estimated remaining life of six years. The Chandler acquisition was Brooks's only business combination for the year. In case expected synergies did not materialize, Brooks Corporation wished to prepare for a potential future spin-off of Chandler, Inc. Therefore, Brooks had Chandler maintain its separate incorporation and independent accounting information system as elements of continuing value. On December 31, 2018, each company submitted the following financial statements for consoli- dation Dividends were declared and paid in the same period. Parentheses indicated credit balances Brooks Corp. Chandler Inc. Income Statement Revenues Cost of goods sold.......... Gain on bargain purchase. ......... Depreciation and amortization Equity earnings from Chandier... Net income. $ (587,000) 203.000 $ (640,000) 255,000 (126,000) 150,000 (199.000) $ (560,000 -O- 151,000 $ (233,000 $(1.835,000) (560,000) 100,000 $12.295,000 $ (805,000) (233.000) 40.000 $ 1998,000) Statement of Retained Earnings Retained earnings, 1/1.. Net income (above) Dividends declared.. Retained earnings, 12/31.. Balance Sheet Current assets... Investment in Chandler .. Trademarks Patented technology ... Equipment Total assets Liabilities Common stock Retained earnings, 12/31 Total liabilities and equity.. $ 432.000 -O- 221.000 410,000 $ 343.000 1,468,000 134,000 395,000 693,000 $ 3.033.000 $ (203.000) (535.000) (2.295,000) $(3.033.000 341,000 $ 1.404,000 $ (106.000) (300,000) (998.000) $(1.404,000 a. Show how Brooks determined the following account balances: Gain on bargain purchase. Earnings from Chandler. Investment in Chandler. 6. Prepare a December 31, 2018, consolidated worksheet for Brooks and Chandler