33. On January 1, 2018, Brooks Corporation exchanged $1,183,000 fair-value consideration for all of worksheet? the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,105,000. 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 combination for the year. with an estimated remaining life of six years. The Chandler acquisition was Brooks's only business 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. $ (587.000) 203,000 Income Statement Revenues Cost of goods sold Gain on bargain purchase. Depreciation and amortization Equity earnings from Chandler. Net income $ (640,000) 255,000 (126,000) 150,000 (199,000) $ (560,000 151,000 $ (233.000 Statement of Retained Earnings Retained earnings, 1/1 Net income (above) Dividends declared. Retained earnings, 12/31 $(1.835,000) (560,000) 100,000 $(2,295.000) $ (805,000) (233,000) 40.000 $ (998,000 $ 432,000 Balance Sheet Current assets Investment in Chandler Trademarks Patented technology Equipment Total assets $ 343,000 1,468,000 134,000 395,000 693,000 $ 3,033,000 221,000 410,000 341,000 $ 1,404,000 Liabilities.. Common stock Retained earnings, 12/31 Total liabilities and equity $ (203,000) (535,000) (2,295.000) $(3,033,000) $ (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. b. Prepare a December 31, 2018, consolidated worksheet for Brooks and Chandler