On January $1,2023,$ Procise Corporatlon acquired $100$ percent of the outstanding voting stock of GaugeRite Corporation for

$$2,133,050$ cash. On the acquisition date, GaugeRite had the following balance sheet:

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred

Book value acquired

Excess fair value over book value

To in$-$process research and development

To equipment $(8-$year renaining life$)$

To goodwill $($indefinite life$)$

Although at acquisition date Procise had expected $$67,250$ 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 fallure with no future economic benefits.

On December $31,2024,$ Procise and GaugeRite submitted the following financlal statements for consolidation. There were no Intra$-$

entity payables on that date.

Required:

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

c$.$ Prepare a consolldated worksheet for Proclse and GaugeRite as of December $31,2024.$