On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $2,005,200 cash. On the acquisition date, GaugeRite had the following balance sheet:

Cash	$	16,000		Accounts payable	$	191,000
Accounts receivable		145,000		Long-term debt		943,000
Land		755,000		Common stock		1,058,000
Equipment (net)		1,928,000		Retained earnings		652,000
Total assets	$	2,844,000		Total liabilities and equity	$	2,844,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred				$	2,005,200
Book value acquired					1,710,000
Excess fair value over book value					295,200
To in-process research and development	$	64,000
To equipment (8-year remaining life)		91,200			155,200
To goodwill (indefinite life)				$	140,000

Although at acquisition date Procise had expected $64,000 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.

EISE les Sales Cost of goods sold Depreciation expense Other operating expenses Subsidiary income Net Income 11,400 WYCINES S (1.305.500) 872,500 132.000 33,000 $(3,849,400) 1,792,500 335,000 223.500 (256,600) S(1.755.000) $ (5.154,900) 2,685,000 359,800 3 256,500 0 $ 2,023,000) 256,600 0 $ 268,000 256,600 Retained earnings 11/21 Net Income Dividends declared Retained earnings 12/31/21 $ (3,092,500) (1.755.000) 300,000 (2,023,000) $ (896,000) (268,000) 28,450 5 (1.137 550) S (4,547,500) Cash Accounts receivable Inventory Investment in GaugeRite Land IS 88,550 888,000 974,000 2.403.960 3,170,000 5,185,000 332,000 $ 13,039,500 S 57.550 241,000 803,000 0 710,000 1.750,000 0 $ 3.581,550 Equipment (net) Goodwill Total assets S 14,405,500 $ 217,000) (3,125,000) (5,150,000) $ (496.000) (870.000) Accounts payable Long-term debt Common stock-Procise Common stock- GaugeRite Retained earnings 12/31/21 Total liabilities and equity (1.058,000) (4.547,500) IS (13,039,500) (1.137,550) IS (3.581.550) Is 524,600 IS 0 $ 14,405,500