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On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $1,967,700 cash. On the acquisition date, GaugeRite

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On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $1,967,700 cash. On the acquisition date, GaugeRite had the following balance sheet: At the acquisition date, the following allocation was prepared: Although at acquisition date Procise had expected $67,500 in future benefits from Gaugefite 's in-process research and development project, by the end of 2020 it was apparent that the research project was a fallure with no future economic benefits. On December 31, 2021, Procise and GaugeRite submitted the following financial statements for consolidation. There were no intra: entity payables on that date. Although at acquisition date Procise had expected $67,500 in future benefits from GaugeRite's in-process research and development. project. by the end of 2020 it was apparent that the research project was a failure with no future economic benefits. On December 31, 2021, Procise and GaugeRite submitted the foliowing financial statements for consolidation. There were no intraentity payables on that date. a. Show how Procise derived its December 31, 2021, Investment in GaugeRite account balance. c. Prepare a consolidated worksheet for Procise and GaugeRite as of December 31, 2021 Prepare a consolldated worksheet for Proclse and GaugeRite as of December 31, 2021. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column or the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Input all amounts as positive values.) Show how Procise derived its December 31, 2021, Investment in GaugeRite account balance. be indicated by a minus sign.)

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