On January 1, 2018, Brooks Corporation exchanged $1,180,500 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $972,500. 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 $330,000 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, Inc Therefore, Brooks had Chandler maintain its separate incorporation and independent accounting information system as elements of continuing value On December 31, 2018, each company submitted the following financial statements for consolidation. Dividends were declared and paid in the same period Broo ks Corp. Chandler Inc. Income Statement Revenues Cost of goods sold Gain on bargain purchase Depreciation and amortization Equity earnings from Chandler $ (508,000) (665,000) 207,000 (122,000) 152,000 (239,000) 202,000 169,000 Net income $ (510,000 (294,000) Statement of Retained Earnings Retained earnings, 1/1 Net income (above) Dividends declared (1,680,000)(672,500) (510,000) (294,000) 150,00070,000 Retained earnings, 12/31 S (2,040,000) (896,500)