On January $1,2024,$ Brooks Corporation exchanged $$1,148,000$ fair$-$value consideration for all of the outstanding voting stock of Chandler, Incorporated. At the acquisition date, Chandler had a book value equal to $$970,000.$ Chandler$$s individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $$294,000$ 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 $ $(782,500)$ $ $(619,000)$

Cost of goods sold $203,000236,000$

Gain on bargain purchase $(116,000)0$

Depreciation and amortization $142,000155,000$

Equity earnings from Chandler $(179,000)0$

Net income $ $(732,500)$ $ $(228,000)$

Statement of Retained Earnings

Retained earnings, $1/1$ $ $(1,505,000)$ $ $(670,000)$

Net income $($above$)(732,500)(228,000)$

Dividends declared $300,00060,000$

Retained earnings, $12/31$ $ $(1,937,500)$ $ $(838,000)$

Balance Sheet

Current assets $ $129,500$ $ $266,000$

Investment in Chandler $1,383,0000$

Trademarks $150,000205,000$

Patented technology $390,000450,000$

Equipment $611,000348,000$

Total assets $ $2,663,500$ $ $1,269,000$

Liabilities $ $(191,000)$ $ $(131,000)$

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

Retained earnings, $12/31(1,937,500)(838,000)$

Total liabilities and equity $ $(2,663,500)$ $ $(1,269,000)$

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.