On January 1, 2015, Brooks Corporation exchanged $1,234,500 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,102,500. Chandlers 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 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		$	(497,500	)		$	(586,000	)
Cost of goods sold			209,000				177,000
Gain on bargain purchase			(180,000	)			0
Depreciation and amortization			146,000				157,000
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			200,000				50,000
Retained earnings, 12/31		$	(2,207,500	)		$	(1,004,500	)
Balance Sheet
Current assets		$	233,000			$	490,500
Investment in Chandler			1,564,500				0
Trademarks			133,000				257,000
Patented technology			379,000				419,000
Equipment			670,000				337,000
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.

a.	Determine the following account balances.

b.	Prepare a December 31, 2015, consolidated worksheet for Brooks and Chandler. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

0 Gain on bargain purchase Equity earnings in Chandler Investment in Chandler 12/31/15