On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $2,012,200 cash. On the acquisition date, GaugeRite had the following balance sheet:

Cash	$	5,000		Accounts payable	$	190,000
Accounts receivable		136,000		Long-term debt		977,000
Land		785,000		Common stock		1,020,000
Equipment (net)		1,913,000		Retained earnings		652,000
Total assets	$	2,839,000		Total liabilities and equity	$	2,839,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred				$	2,012,200
Book value acquired					1,672,000
Excess fair value over book value					340,200
To in-process research and development	$	65,000
To equipment (8-year remaining life)		127,200			192,200
To goodwill (indefinite life)				$	148,000

Although at acquisition date Procise had expected $65,000 in future benefits from GaugeRites 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 following financial statements for consolidation. There were no intra-entity payables on that date.

	Procise				GaugeRite
Sales	$	(3,646,900	)		$	(1,216,500	)
Cost of goods sold		1,702,500				775,000
Depreciation expense		329,000				145,000
Other operating expenses		219,500				36,500
Subsidiary income		(244,100	)			0
Net income	$	(1,640,000	)		$	(260,000	)
Retained earnings 1/1/21	$	(3,047,500	)		$	(899,000	)
Net income		(1,640,000	)			(260,000	)
Dividends declared		200,000				25,500
Retained earnings 12/31/21	$	(4,487,500	)		$	(1,133,500	)
Cash	$	38,100			$	44,500
Accounts receivable		880,000				189,000
Inventory		925,000				514,000
Investment in GaugeRite		2,396,900				0
Land		3,407,500				797,000
Equipment (net)		5,085,000				1,915,000
Goodwill		353,000				0
Total assets	$	13,085,500			$	3,459,500
Accounts payable	$	(228,000	)		$	(410,000	)
Long-term debt		(3,220,000	)			(896,000	)
Common stock		(5,150,000	)			(1,020,000	)
Retained earnings 12/31/21		(4,487,500	)			(1,133,500	)
Total liabilities and equity	$	(13,085,500	)		$	(3,459,500	)

1. Show how Procise derived its December 31, 2021, Investment in GaugeRite account balance.

2. Prepare a consolidated worksheet for Procise and GaugeRite as of December 31, 2021.