On January $1,2020,$ Procise Corporation acquired $100$ percent of the outstanding voting stock of GaugeRite Corporation for $$1,968,000$ cash. On the acquisition date, GaugeRite had the following balance sheet:

Cash $ $15,000$ Accounts payable $ $136,000$

Accounts receivable $145,000$ Long$-$term debt $963,000$

Land $769,000$ Common stock $1,028,000$

Equipment $($net$)1,916,000$ Retained earnings $718,000$

Total assets $ $2,845,000$ Total liabilities and equity $ $2,845,000$

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred $ $1,968,000$

Book value acquired $1,746,000$

Excess fair value over book value $222,000$

To in$-$process research and development $ $52,000$

To equipment $(8-$year remaining life$)60,000112,000$

To goodwill $($indefinite life$)$ $ $110,000$

Although at acquisition date Procise had expected $$52,000$ in future benefits from GaugeRite$$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 intra$-$entity payables on that date.

Procise GaugeRite

Sales $ $(3,751,500)$ $ $(1,160,250)$

Cost of goods sold $1,797,500750,000$

Depreciation expense $335,000141,000$

Other operating expenses $223,00035,250$

Subsidiary income $(226,500)0$

Net income $ $(1,622,500)$ $ $(234,000)$

Retained earnings $1/1/21$ $ $(3,155,000)$ $ $(930,000)$

Net income $(1,622,500)(234,000)$

Dividends declared $200,00025,700$

Retained earnings $12/31/21$ $ $(4,577,500)$ $ $(1,138,300)$

Cash $ $14,200$ $ $87,800$

Accounts receivable $899,000238,000$

Inventory $903,000411,000$

Investment in GaugeRite $2,321,3000$

Land $3,497,500785,000$

Equipment $($net$)5,180,0001,862,500$

Goodwill $342,0000$

Total assets $ $13,157,000$ $ $3,384,300$

Accounts payable $ $(207,000)$ $ $(415,000)$

Long$-$term debt $(3,222,500)(803,000)$

Common stock $(5,150,000)(1,028,000)$

Retained earnings $12/31/21(4,577,500)(1,138,300)$

Total liabilities and equity $ $(13,157,000)$ $ $(3,384,300)$

Show how Procise derived its December $31,2021,$ Investment in GaugeRite account balance.

Prepare a consolidated worksheet for Procise and GaugeRite as of December $31,2021.$