On January 1, 2017, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $2,038,100 cash. On the acquisition date, GaugeRite had the following balance sheet:

Cash	$	93,000		Accounts payable	$	206,000
Accounts receivable		133,000		Long-term debt		975,000
Land		731,000		Common stock		1,018,000
Equipment (net)		1,976,000		Retained earnings		734,000
	$	2,933,000			$	2,933,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred				$	2,038,100
Book value acquired					1,752,000
Excess fair value over book value					286,100
To in-process research and development	$	53,500
To equipment (8-year remaining life)		97,600			151,100
To goodwill (indefinite life)				$	135,000

Although at acquisition date Procise had expected $53,500 in future benefits from GaugeRites in-process research and development project, by the end of 2017, it was apparent that the research project was a failure with no future economic benefits.

On December 31, 2018, Procise and GaugeRite submitted the following trial balances for consolidation. There were no intra-entity payables on that date.

	Procise				GaugeRite
Sales	$	(3,672,700	)		$	(1,183,250	)
Cost of goods sold		1,730,000				727,500
Depreciation expense		334,000				148,000
Other operating expenses		222,500				36,750
Subsidiary income		(258,800	)			0
Net income	$	(1,645,000	)		$	(271,000	)
Retained earnings 1/1/18	$	(3,240,000	)		$	(933,000	)
Net income		(1,645,000	)			(271,000	)
Dividends declared		100,000				25,450
Retained earnings 12/31/18	$	(4,785,000	)		$	(1,178,550	)
Cash	$	41,250			$	\60,050	\
Accounts receivable		863,000				162,000
Inventory		953,000				609,000
Investment in GaugeRite		2,404,750				0
Land		3,607,500				744,000
Equipment (net)		5,165,000				1,947,500
Goodwill		297,000				0
Total assets	$	13,331,500			$	3,522,550
Accounts payable	$	(214,000	)		$	(437,000	)
Long-term debt	$	(3,182,500	)		$	(889,000	)
Common stock		(5,150,000	)			(1,018,000	)
Retained earnings 12/31/18		(4,785,000	)			(1,178,550	)
Total liabilities and equity	$	(13,331,500	)		$	(3,522,550	)

Show how Procise derived its December 31, 2018, Investment in GaugeRite account balance.

Prepare a consolidated worksheet for Procise and GaugeRite as of December 31, 2018.