On January $1,2024,$ Brooks Corporation exchanged $$1,136,500$ fair$-$value consideration for all of the outstanding voting stock of Chandler, Incorporated. At the acquisition date, Chandler had a book value equal to $$1,032,500.$ Chandler$$s individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $$234,000$ 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 $ $(759,500)$ $ $(553,000)$

Cost of goods sold $216,000178,000$

Gain on bargain purchase $(130,000)0$

Depreciation and amortization $141,000166,000$

Equity earnings from Chandler $(170,000)0$

Net income $ $(702,500)$ $ $(209,000)$

Statement of Retained Earnings

Retained earnings, $1/1$ $ $(1,815,000)$ $ $(732,500)$

Net income $($above$)(702,500)(209,000)$

Dividends declared $200,00050,000$

Retained earnings, $12/31$ $ $(2,317,500)$ $ $(891,500)$

Balance Sheet

Current assets $ $504,000$ $ $303,500$

Investment in Chandler $1,386,5000$

Trademarks $126,000294,000$

Patented technology $361,000420,000$

Equipment $660,000356,000$

Total assets $ $3,037,500$ $ $1,373,500$

Liabilities $ $(185,000)$ $ $(182,000)$

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

Retained earnings, $12/31(2,317,500)(891,500)$

Total liabilities and equity $ $(3,037,500)$ $ $(1,373,500)$

Note: Parentheses indicate a credit balance.

Required:

Determine the following account balances:

Gain on bargain purchase.

Earnings from Chandler.

Investment in Chandler.

This is what I have and it say its incomplete

Consideration transferred $$1,136,500$

Chandler book value $$1,032,500$

Technology undervaluation $234,000$

$1,266,500$

Gain on bargain purchase $$130,000$

Chandler net income $$209,000$

Technology amortization $39,000$

Equity earnings in Chandler $$170,000$

Fair value of net assets at acquisition$-$date $$1,266,500$

Equity earnings in Chandler $170,000$

Dividends declared $50,000$

Investment in Chandler $12/31/24$ $$1,386,500$

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

This is what I have and it says its incomplete.

BROOKS AND CHANDLER

Consolidation Worksheet

For Year Ending December $31,2024$

Accounts Brooks Chandler Consolidation Entries Consolidated Totals

Debit Credit

Income Statement

Revenues $$(759,500)$ $$(553,000)$ $$1,312,500$

Cost of goods sold $216,000178,000394,000$

Gain on bargain purchase $(130,000)0(130,000)$

Depreciation and amortization $141,000166,00039,000346,000$

Equity earnings in Chandler $(170,000)0170,0000$

Net income $$(702,500)$ $$(209,000)$ $$702,500$

Statement of Retained Earnings

Retained earnings, $1/1$ $$(1,815,000)$ $$(732,500)732,500$ $$1,815,000$

Net income $(702,500)(209,000)702,500$

Dividends declared $200,00050,00050,000200,000$

Retained earnings, $12/31$ $$(2,317,500)$ $$(891,500)$ $$2,317,500$

Balance Sheet

Current assets $$504,000$ $$303,500$ $$807,500$

Investment in Chandler $1,386,500050,0001,436,5000$

Trademarks $126,000294,000420,000$

Patented technology $361,000420,000234,00039,000976,000$

Equipment $660,000356,0001,016,000$

Total assets $$3,037,500$ $$1,373,500$ $$3,219,500$

Liabilities $$(185,000)$ $$(182,000)$ $$367,000$

Common stock $(535,000)(300,000)300,000535,000$

Retained earnings, $12/31(2,317,500)(891,500)2,317,500$

Total liabilities and equity $$(3,037,500)$ $$(1,373,500)$ $$1,525,500$ $$1,525,500$ $$3,219,500$e and it says its incomplete.