On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $1,968,000 cash. On the acquisition date, GaugeRite had the following balance sheet:

Cash	$	15,000		Accounts payable	$	136,000
Accounts receivable		145,000		Long-term debt		963,000
Land		769,000		Common stock		1,028,000
Equipment (net)		1,916,000		Retained earnings		718,000
Total assets	$	2,845,000		Total liabilities and equity	$	2,845,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred				$	1,968,000
Book value acquired					1,746,000
Excess fair value over book value					222,000
To in-process research and development	$	52,000
To equipment (8-year remaining life)		60,000			112,000
To goodwill (indefinite life)				$	110,000

Although at acquisition date Procise had expected $52,000 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	$	(3,751,500	)		$	(1,160,250	)
Cost of goods sold		1,797,500				750,000
Depreciation expense		335,000				141,000
Other operating expenses		223,000				35,250
Subsidiary income		(226,500	)			0
Net income	$	(1,622,500	)		$	(234,000	)
Retained earnings 1/1/21	$	(3,155,000	)		$	(930,000	)
Net income		(1,622,500	)			(234,000	)
Dividends declared		200,000				25,700
Retained earnings 12/31/21	$	(4,577,500	)		$	(1,138,300	)
Cash	$	14,200			$	87,800
Accounts receivable		899,000				238,000
Inventory		903,000				411,000
Investment in GaugeRite		2,321,300				0
Land		3,497,500				785,000
Equipment (net)		5,180,000				1,862,500
Goodwill		342,000				0
Total assets	$	13,157,000			$	3,384,300
Accounts payable	$	(207,000	)		$	(415,000	)
Long-term debt		(3,222,500	)			(803,000	)
Common stock		(5,150,000	)			(1,028,000	)
Retained earnings 12/31/21		(4,577,500	)			(1,138,300	)
Total liabilities and equity	$	(13,157,000	)		$	(3,384,300	)

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.