On January $1,2023,$ Procise Corporation acquired $100$ percent of the outstanding voting stock of GaugeRite Corporation for $$2,026,600$ cash. On the acquisition date, GaugeRite had the following balance sheet:

Cash $ $75,000$ Accounts payable $ $169,000$

Accounts receivable $118,000$ Long$-$term debt $1,018,000$

Land $767,000$ Common stock $1,022,000$

Equipment $($net$)1,932,000$ Retained earnings $683,000$

Total assets $ $2,892,000$ Total liabilities and equity $ $2,892,000$

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred $ $2,026,600$

Book value acquired $1,705,000$

Excess fair value over book value $321,600$

To in$-$process research and development $ $58,000$

To equipment $(8-$year remaining life$)113,600171,600$

To goodwill $($indefinite life$)$ $ $150,000$

Although at acquisition date Procise had expected $$58,000$ in future benefits from GaugeRite$$s in$-$process research and development project, by the end of $2023$ it was apparent that the research project was a failure with no future economic benefits.

On December $31,2024,$ Procise and GaugeRite submitted the following financial statements for consolidation. There were no intra$-$entity payables on that date.

Accounts Procise GaugeRite

Sales $ $(3,851,950)$ $ $(1,187,000)$

Cost of goods sold $1,700,000815,000$

Depreciation expense $329,000129,000$

Other operating expenses $219,75032,000$

Subsidiary income $(196,800)0$

Net income $ $(1,800,000)$ $ $(211,000)$

Retained earnings $1/1/24$ $ $(3,062,500)$ $ $(931,000)$

Net income $(1,800,000)(211,000)$

Dividends declared $100,00025,550$

Retained earnings $12/31/24$ $ $(4,762,500)$ $ $(1,116,450)$

Cash $ $103,350$ $ $51,450$

Accounts receivable $889,000221,000$

Inventory $990,000752,000$

Investment in GaugeRite $2,373,6500$

Land $3,652,500721,000$

Equipment $($net$)5,087,5001,710,000$

Goodwill $371,0000$

Total assets $ $13,467,000$ $ $3,455,450$

Accounts payable $ $(262,000)$ $ $(455,000)$

Long$-$term debt $(3,292,500)(862,000)$

Common stock $(5,150,000)(1,022,000)$

Retained earnings $12/31/24(4,762,500)(1,116,450)$

Total liabilities and equity $ $(13,467,000)$ $ $(3,455,450)$

Required:

Show how Procise derived its December $31,2024,$ Investment in GaugeRite account balance.

Prepare a consolidated worksheet for Procise and GaugeRite as of December $31,2024.$