On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $2,107,150 cash. On the acquisition date, GaugeRite had the following balance sheet:

Cash	$	50,000		Accounts payable	$	169,000
Accounts receivable		119,000		Long-term debt		976,000
Land		789,000		Common stock		1,074,000
Equipment (net)		1,962,000		Retained earnings		701,000
Total assets	$	2,920,000		Total liabilities and equity	$	2,920,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred				$	2,107,150
Book value acquired					1,775,000
Excess fair value over book value					332,150
To in-process research and development	$	65,750
To equipment (8-year remaining life)		122,400			188,150
To goodwill (indefinite life)				$	144,000

Although at acquisition date Procise had expected $65,750 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	$	(3,714,050	)		$	(1,299,000	)
Cost of goods sold		1,755,000				877,500
Depreciation expense		325,000				145,000
Other operating expenses		216,250				36,500
Subsidiary income		(224,700	)			0
Net income	$	(1,642,500	)		$	(240,000	)
Retained earnings 1/1/21	$	(3,210,000	)		$	(891,000	)
Net income		(1,642,500	)			(240,000	)
Dividends declared		300,000				26,850
Retained earnings 12/31/21	$	(4,552,500	)		$	(1,104,150	)
Cash	$	11,550			$	71,150
Accounts receivable		911,000				225,000
Inventory		952,000				416,000
Investment in GaugeRite		2,413,950				0
Land		3,417,500				792,000
Equipment (net)		5,012,500				1,915,000
Goodwill		365,000				0
Total assets	$	13,083,500			$	3,419,150
Accounts payable	$	(261,000	)		$	(438,000	)
Long-term debt		(3,120,000	)			(803,000	)
Common stock		(5,150,000	)			(1,074,000	)
Retained earnings 12/31/21		(4,552,500	)			(1,104,150	)
Total liabilities and equity	$	(13,083,500	)		$	(3,419,150	)

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.