On January 1, 2015, Brooks Corporation exchanged $1,183,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,105,000. Chandlers individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $204,000 with an estimated remaining life of six years. The Chandler acquisition was Brookss 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, Inc. Therefore, Brooks had Chandler maintain its separate incorporation and independent accounting information system as elements of continuing value.

On December 31, 2015, each company submitted the following financial statements for consolidation. Dividends were declared and paid in the same period.

		Brooks Corp.				Chandler Inc.
Income Statement
Revenues		$	(640,000	)		$	(587,000	)
Cost of goods sold			255,000				203,000
Gain on bargain purchase			(126,000	)			0
Depreciation and amortization			150,000				151,000
Equity earnings from Chandler			(199,000	)			0
Net income		$	(560,000	)		$	(233,000	)
Statement of Retained Earnings
Retained earnings, 1/1		$	(1,835,000	)		$	(805,000	)
Net income (above)			(560,000	)			(233,000	)
Dividends declared			100,000				40,000
Retained earnings, 12/31		$	(2,295,000	)		$	(998,000	)
Balance Sheet
Current assets		$	343,000			$	432,000
Investment in Chandler			1,468,000				0
Trademarks			134,000				221,000
Patented technology			395,000				410,000
Equipment			693,000				341,000
Total assets		$	3,033,000			$	1,404,000
Liabilities		$	(203,000	)		$	(106,000	)
Common stock			(535,000	)			(300,000	)
Retained earnings, 12/31			(2,295,000	)			(998,000	)
Total liabilities and equity		$	(3,033,000	)		$	(1,404,000	)

1. Determine the following account balances:

a) Gain on bargain purchase

b) Equity earnings in Chandler

c) Investment in Chandler 12/31/15

2. Prepare a December 31, 2015, consolidated worksheet for Brooks and Chandler.