On January 1, 2018, Brooks Corporation exchanged $1,235,000 falr-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,185,000. Chandler's Individual assets and llabilitles had fair values equal to their respective book values except for the patented technology account, which was undervalued by $246,000 with an estimated remalning life of slx years. The Chandler acquisition was Brooks's only business combination for the year. In case expected synergles did not materlallze, Brooks Corporatlon wished to prepare for a potentlal future spin-off of Chandler, Inc. Therefore, Brooks had Chandler malntaln Its separate Incorporation and Independent accountlng Information system as elements of continulng value On December 31, 2018, each company submitted the following financial statements for consolidation. DIVIdends were declared and pald In the same perlod. Brooks Corp Chandler Inc. Income Statement (466,eee) (671,0ee) Revenues Cost of goods sold 252,00e 284,eee Gain on bargain purchase Depreciation and amortization Equity earnings from Chandler (196,eee) 139,0ee 177,eee (249,eee) (520,eee) (290,eee) Net income Statement of Retained Earnings Retained earnings, 1/1 Net income (above) $(1,830,eee) (520,0ee) (885,eee) (290,eee) Dividends declared 300.000 60,e0e (2,ese,eee) (1,115,eee) Retained earnings, 12/31 Balance Sheet Current assets 142,eee 422,0ee Investment in Chandler 1,620,eee Trademarks 198,0ee 291,000 Patented technology Equipment 307,00e 455,eee 398,000 625.000 $ 2,892,eee $ 1,566,eee Total assets Liabilities (307,eee) (535,eee) (151,eee) (30e,eee) Common stock Retained earnings, 12/31 (2,0se,eee) (1,115,00e) Total liabilities and equity (2,892,0ee) (1,566,0ee) Note: Parentheses indicate a credit balance. a. Determine the following account balances: Galn on bargaln purchase. Earnings from Chandler. Investment In Chandler b. Prepare a December 31, 2018, consolidated worksheet for Brooks and Chand ler Complete this question by entering your a nswers in the tabs below. Required A Required B Determine the following account balances. C Gain on bargain purchase Equity earnings in Chandler For Year Ending December 31, 2018 Consolidation Entries Consolidated Totals Accounts Brooks Chandler Debit Credit Income Statement (486,000) Revenues (671,000) Cost of goods sold 252,000 204,000 Gain on bargain purchase (196,000) 0 Depreciation and amortization 139,000 177,000 (249,000) Equity earnings in Chandler C S (290,000) (520,000) Net income Statement of Retained Earnings (885,000 Retained earnings, 1/1 S(1,830,000) Net income (520,000) (290,000) Dividends declared 300,000 60,000 S (2,050,000) S(1,115,000) Retained earnings, 12/31 Balance Sheet 422,000 Current assets 142,000 Investment in Chandler 1,620,000 C 291,000 Trademarks 198,000 Patented technology 455,000 307,000 625,000 398,000 Equipment S 2,892,000 S 1,586,000 Total assets s (151,000) Liabilities (307.000) Common stock (535,000) (300,000) Retained earnings, 12/31 (2.050.000) (1,115,000) tatement of Retained Earnings (885,000) etained earnings, 1/1 $(1,830,000) let income (520,000) (290,000) ividends declared 60,000 300,000 (2,050,000) (1.115,000) Retained earnings, 12/31 alance Sheet urrent assets S 142,000 422,000 vestment in Chandler 1,620,000 0 291,000 rademarks 198,000 atented technology 455,000 307,000 quipment 625,000 398,000 S 2,892,00 S 1,586,000 Total assets abilities S (151.000) (300,000) S(307,000) (535,000) Common stock etained earnings, 12/31 (2,050,000) (1.115,000) S(2,892,000) S(1,566,000) Total liabilities and equity