On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $2,042,200 cash. On the acquisition date, GaugeRite had the following balance sheet:

Cash	$	125,000		Accounts payable	$	183,000
Accounts receivable		115,000		Long-term debt		990,000
Land		773,000		Common stock		1,059,000
Equipment (net)		1,926,000		Retained earnings		707,000
Total assets	$	2,939,000		Total liabilities and equity	$	2,939,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred				$	2,042,200
Book value acquired					1,766,000
Excess fair value over book value					276,200
To in-process research and development	$	47,000
To equipment (8-year remaining life)		99,200			146,200
To goodwill (indefinite life)				$	130,000

Although at acquisition date Procise had expected $47,000 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	$	(3,740,650	)		$	(1,340,500	)
Cost of goods sold		1,690,000				875,000
Depreciation expense		336,000				139,000
Other operating expenses		224,250				34,500
Subsidiary income		(279,600	)			0
Net income	$	(1,770,000	)		$	(292,000	)
Retained earnings 1/1/21	$	(3,000,000	)		$	(927,000	)
Net income		(1,770,000	)			(292,000	)
Dividends declared		100,000				26,475
Retained earnings 12/31/21	$	(4,670,000	)		$	(1,192,525	)
Cash	$	37,075			$	67,525
Accounts receivable		907,000				212,000
Inventory		996,000				700,000
Investment in GaugeRite		2,455,925				0
Land		3,432,500				727,000
Equipment (net)		5,202,500				1,835,000
Goodwill		356,000				0
Total assets	$	13,387,000			$	3,541,525
Accounts payable	$	(232,000	)		$	(490,000	)
Long-term debt		(3,335,000	)			(800,000	)
Common stock		(5,150,000	)			(1,059,000	)
Retained earnings 12/31/21		(4,670,000	)			(1,192,525	)
Total liabilities and equity	$	(13,387,000	)		$	(3,541,525	)

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.