On January $1,2024,$ Brooks Corporation exchanged $$1,234,500$ fair$-$value consideration for all of the outstanding voting stock of Chandler, Incorporated. At the acquisition date, Chandler had a book value equal to $$1,102,500.$ Chandler$$s individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $$312,000$ 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, Incorporated. Therefore, Brooks had Chandler maintain its separate incorporation and independent accounting information system as elements of continuing value.

On December $31,2024,$ each company submitted the following financial statements for consolidation. Dividends were declared and paid in the same period.

Accounts Brooks Corporation Chandler Incorporated

Income Statement

Revenues $ $(497,500)$ $ $(586,000)$

Cost of goods sold $209,000177,000$

Gain on bargain purchase $(180,000)0$

Depreciation and amortization $146,000157,000$

Equity earnings from Chandler $(200,000)0$

Net income $ $(522,500)$ $ $(252,000)$

Statement of Retained Earnings

Retained earnings, $1/1$ $ $(1,885,000)$ $ $(802,500)$

Net income $($above$)(522,500)(252,000)$

Dividends declared $200,00050,000$

Retained earnings, $12/31$ $ $(2,207,500)$ $ $(1,004,500)$

Balance Sheet

Current assets $ $233,000$ $ $490,500$

Investment in Chandler $1,564,5000$

Trademarks $133,000257,000$

Patented technology $379,000419,000$

Equipment $670,000337,000$

Total assets $ $2,979,500$ $ $1,503,500$

Liabilities $ $(237,000)$ $ $(199,000)$

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

Retained earnings, $12/31(2,207,500)(1,004,500)$

Total liabilities and equity $ $(2,979,500)$ $ $(1,503,500)$

Note: Parentheses indicate a credit balance.

Required:

Determine the following account balances:

Gain on bargain purchase.

Earnings from Chandler.

Investment in Chandler.

Prepare a December $31,2024,$ consolidated worksheet for Brooks and Chandler.