On January $1,2024,$ Brooks Corporation exchanged $$1,322,500$ fair$-$value consideration for all of the outstanding voting stock of Chandler, Incorporated. At the acquisition date, Chandler had a book value equal to $$1,172,500.$ Chandler$$s individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $$258,000$ 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 $ $(674,500)$ $ $(631,000)$

Cost of goods sold $232,000221,000$

Gain on bargain purchase $(108,000)0$

Depreciation and amortization $146,000154,000$

Equity earnings from Chandler $(213,000)0$

Net income $ $(617,500)$ $ $(256,000)$

Statement of Retained Earnings

Retained earnings, $1/1$ $ $(1,580,000)$ $ $(872,500)$

Net income $($above$)(617,500)(256,000)$

Dividends declared $100,00040,000$

Retained earnings, $12/31$ $ $(2,097,500)$ $ $(1,088,500)$

Balance Sheet

Current assets $ $146,000$ $ $557,500$

Investment in Chandler $1,603,5000$

Trademarks $181,000242,000$

Patented technology $312,000406,000$

Equipment $689,000346,000$

Total assets $ $2,931,500$ $ $1,551,500$

Liabilities $ $(299,000)$ $ $(163,000)$

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

Retained earnings, $12/31(2,097,500)(1,088,500)$

Total liabilities and equity $ $(2,931,500)$ $ $(1,551,500)$

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.