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33. On January 1, 2018. Brooks Corporation exchanged 51,183.000 fair value hook value the outstanding voting stock of Chandler, Inc. At the acquisition date. Chandler

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33. On January 1, 2018. Brooks Corporation exchanged 51,183.000 fair value hook value the outstanding voting stock of Chandler, Inc. At the acquisition date. Chandler had a equal to 1.103.000. Chandler's individual assets and liabilities had fair values al to their respec- alone tive book values except for the patented technology in which was undervalued by with an estimated remaining life of six years. The Chandler acquisition was Brooks's only combination for the year. In case expected synergies did not materialire, Broks Corporation wished to prepare potential future spin-off of Chandler, Inc. Therefore R akshad Chandler maintain its separ incorporation and independent accounting information systemas elements of continuing value On December 31, 2018 each company submitted the following financial statements for con dation Dividends were declared and paid in the same period Parentheses indicated credit balances Brooks Corp. Chandler Inc. $ (640,000) 255.000 (126,000) 150,000 (199.000) $ (560,000) $(587.000) 203.000 -0- 151.000 $ (233,000) Income Statement Revenues Cost of goods sold Gain on bargain purchase. Depreciation and amortization.. Equity earnings from Chandler.... Net income....... . 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 ......... $(1.835,000) (560,000) 100,000 $12,295,000 $ (805.000) (233,000) 40.000 $ 1998,000 $ 343,000 1,468,000 134,000 395,000 693,000 $3,033,000 $ (203.000) (535,000) (2.295,000) $(3,033,000) $ 432,000 -0- 221,000 410,000 341,000 $ 1.404.000 $ (106,000) (300,000) (998,000) $(1.404.000) Liabilities.. Common stock .......... Retained earnings, 12/31 Total liabilities and equity..... 4. Show how Brooks determined the following account balances: . Gain on bargain purchase. . Earnings from Chandler. Investment in Chandler. Prepare a December 31, 2018, consolidated worksheet for Brooks and Chandler

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