On January 1, 2018, 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 infor mation 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 Parentheses indicated credit balances 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) Show how Brooks determined the following account balances Gain on bargain purchase Earnings from Chandler Investment in Chandler Prepare a December 31, 2018, consolidated worksheet for Brooks and Chandler

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On January 1, 2018, Brooks Corporation exchanged $1,183,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler

On January 1, 2018, 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 infor-mation 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. Parentheses indicated credit balances.

	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)

Show how Brooks determined the following account balances:
- Gain on bargain purchase.
- Earnings from Chandler.
- Investment in Chandler.
Prepare a December 31, 2018, consolidated worksheet for Brooks and Chandler.