Complete this question by entering your answers in the tabs below. Show how Procise derived its December 31, 2021, Investment in GaugeRito account balance. (Amounts to be deducted should be indicated by a minus sign.) On January 1,2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $2058,500 cash On the bcculsition date, GaygeRte had the following balance sheet At the acquistion date, the following allocation was prepared: Athough at acquisition date Procise had expected $66,500 in future benefits from GaugeRite's in-process research and development project, by the end of 2020 it was apparent that the research project was a failure with no future economic benefits On December 31, 2021, Procise and GaugeRite submitted the following financial statements for consolidation. There were no intr entity payables on that date a. Show how Procise derived its December 31, 2021, Investment in GaugeRite account balance. c. Prepare a consolidated worksheet for Procise and GaugeRite as of December 31, 2021. Procise and Subsidiary GaugeRite Consolidated Worksheet for the year ended December 31, 2021 \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Accounts } & \multirow[b]{2}{*}{\begin{tabular}{l} 12/31/21 \\ Procise \end{tabular}} & \multirow[b]{2}{*}{\begin{tabular}{c} 12/31/21 \\ GaugeRite \end{tabular}} & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow[b]{2}{*}{\begin{tabular}{l} Consolidated \\ Totals \end{tabular}} \\ \hline & & & Debit & Credit & \\ \hline Sales & $(3,828,000) & $(1,070,750) & & & \\ \hline Cost of goods sold & 1,702,500 & 670,000 & & & \\ \hline Depreciation expense & 329,000 & 146,000 & & & \\ \hline Other operating expenses & 218,500 & 36,750 & & & \\ \hline Subsidiary income & (209,500) & 0 & & & \\ \hline Net Income & \$ (1,787,500) & 218,000 & & & \\ \hline Retained earnings 1/1/21 & $(3,010,000) & $(913,000) & & & \\ \hline Net Income & (1,787,500) & (218,000) & & & \\ \hline Dividends declared & 300,000 & 27,050 & & & \\ \hline Retained earnings 12/31/21 & \$ (4,497,500) & $(1.103,950) & & & \\ \hline Cash & 19,550 & 99,450 & & & \\ \hline Accounts receivable & 929,000 & 222,000 & & & \\ \hline Inventory & 923.000 & 510,000 & & & \\ \hline Investment in GaugeRite & 2,366,950 & 0 & & & \\ \hline Land & 3,305,000 & 757,000 & & & \\ \hline Equipment (net) & 5,075,000 & 1,927,500 & & & \\ \hline Goodwill & 359,000 & 0 & & & \\ \hline Total assets & $12,977,500 & $3,515,950 & & & $14,307,500 \\ \hline Accounts payable & $(225,000) & $(457,000) & & & \\ \hline Long-term debt & (3,105,000) & (873,000) & & & \\ \hline Common stock-Procise & (5,150,000) & & & & \\ \hline Common stock-GaugeRite & & (1,082,000) & & & \\ \hline Retained earnings 12/31/21 & (4,497,500) & (1,103,950) & & & \\ \hline Total liabilities and equity & $(12.977,500) & $(3,515,950) & $ & $ & \$ 14,307,500 \\ \hline \end{tabular}