On January $1,2021,$ Brooks Corporation exchanged $$1,136,500$ fair$-$value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $$1,032,500.$ Chandler$$s individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $$234,000$ 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 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 $31,2021,$ each company submitted the following financial statements for consolidation. Dividends were declared and paid in the same period.

Brooks Corp. Chandler Inc.

Income Statement

Revenues $ $(759,500)$ $ $(553,000)$

Cost of goods sold $216,000178,000$

Gain on bargain purchase $(130,000)0$

Depreciation and amortization $141,000166,000$

Equity earnings from Chandler $(170,000)0$

Net income $ $(702,500)$ $ $(209,000)$

Statement of Retained Earnings

Retained earnings, $1/1$ $ $(1,815,000)$ $ $(732,500)$

Net income $($above$)(702,500)(209,000)$

Dividends declared $200,00050,000$

Retained earnings, $12/31$ $ $(2,317,500)$ $ $(891,500)$

Balance Sheet

Current assets $ $504,000$ $ $303,500$

Investment in Chandler $1,386,5000$

Trademarks $126,000294,000$

Patented technology $361,000420,000$

Equipment $660,000356,000$

Total assets $ $3,037,500$ $ $1,373,500$

Liabilities $ $(185,000)$ $ $(182,000)$

Common stock $(535,000)(300,000)$

Retained earnings, $12/31(2,317,500)(891,500)$

Total liabilities and equity $ $(3,037,500)$ $ $(1,373,500)$

Note: Parentheses indicate a credit balance.

a$.$ Determine the following account balances:

Gain on bargain purchase.

Earnings from Chandler.

Investment in Chandler.

b$.$ Prepare a December $31,2021,$ consolidated worksheet for Brooks and Chandler.