33. On January 1, 2018, Brooks Corporation exchanged S1,183,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $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 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 fora 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.. $ (640,000) $ (587,000) 203,000 255,000 (126,000) 150,000 199,000) 15 1,000 Net income... 560,000) $ (233,000) Statement of Retained Earnings Retained earnings, 1/1 Net income (above) $(1.835,000) (560.000) $ (805,000) (233,000) 40,000 100,000 Retained earnings, 12/31 $%2,295,000 998000) Balance Sheet Current assets $ 343.000 $ 432.000 Investment in Chandler Trademarks 1.468,000 134,000 22 1.000 Income Statement Revenues Cost of goods sold . . . . $ (587000) 203,000 255,000 (126,000) 150,000 (199,000) 151,000 Equity earnings from Chandler -- $ (560,000) $ (233,000) Statement of Retained Earnings S(1835.000) (805,000) Net income (above) (233,000) 40,000 (560.000) 100,000 $ (998,000) Retained earnings, 12/31 Balance Sheet s 432,000 $343,000 1.468,000 134,000 221,000 410,000 34 1.000 Trademarks Patented technology Equipment 395,000 693,000 $3033000 1.404000 Total assets s (203,00o) (535.000) (2.295.000 $(3.033.000) $ (106,000) (300,000) (998,000) Liabilities. Common stock Retained earnings, 12/3 1 Total liabilities and equity... $3,033000 $1.404000 Show how Brooks determined the following account balances: . Gain on bargain purchase. . Earnings from Chandler. . Investment in Chandler. a. Prepare a December 31, 2018, consolidated worksheet for Brooks and Chandler. b