On January 1, 2017, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $2,011,050 cash. On the acquisition date, GaugeRite had the following balance sheet: Cash Accounts receivable Land Equipment (net) $ 83,000 Accounts payable 176,000 Long-term debt $ 219,000 969,000 1,001,000 749,000 $2,938,000 734,000 Common stochk 1,945,000 Retained earnings $2,938,000 At the acquisition date, the following allocation was prepared Fair value of consideration transferred Book value acquired Excess fair value over book value 2,011,050 1,750,000 261,050 To in-process research and development To equipment (8-year remaining life) To goodwill (indefinite life) 56,250 68,800 125,050 $ 136,000 Although at acquisition date Procise had expected $56,250 in future benefits from GaugeRite's 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