On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $2,026,850 cash. On the acquisition date, GaugeRite had the following balance sheet:

Cash	$	125,000		Accounts payable	$	176,000
Accounts receivable		110,000		Long-term debt		974,000
Land		705,000		Common stock		985,000
Equipment (net)		1,937,000		Retained earnings		742,000
Total assets	$	2,877,000		Total liabilities and equity	$	2,877,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred				$	2,026,850
Book value acquired					1,727,000
Excess fair value over book value					299,850
To in-process research and development	$	46,250
To equipment (8-year remaining life)		133,600			179,850
To goodwill (indefinite life)				$	120,000

Although at acquisition date Procise had expected $46,250 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	$	(3,615,450	)		$	(1,133,000	)
Cost of goods sold		1,647,500				667,500
Depreciation expense		332,000				147,000
Other operating expenses		221,250				36,500
Subsidiary income		(265,300	)			0
Net income	$	(1,680,000	)		$	(282,000	)
Retained earnings 1/1/21	$	(3,240,000	)		$	(948,000	)
Net income		(1,680,000	)			(282,000	)
Dividends declared		300,000				24,625
Retained earnings 12/31/21	$	(4,620,000	)		$	(1,205,375	)
Cash	$	8,425			$	9,375
Accounts receivable		932,000				175,000
Inventory		926,000				606,000
Investment in GaugeRite		2,410,575				0
Land		3,432,500				722,000
Equipment (net)		5,132,500				1,935,000
Goodwill		335,000				0
Total assets	$	13,177,000			$	3,447,375
Accounts payable	$	(242,000	)		$	(409,000	)
Long-term debt		(3,165,000	)			(848,000	)
Common stock		(5,150,000	)			(985,000	)
Retained earnings 12/31/21		(4,620,000	)			(1,205,375	)
Total liabilities and equity	$	(13,177,000	)		$	(3,447,375	)

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.