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 Accounts receivable Land Equipment (net) Total assets $ 125,000 115,000 773,000 1,926,000 $ 2,939,000 Accounts payable Long-term debt Common stock Retained earnings Total liabilities and equity $ 183,000 990,000 1,059,000 707,000 $ 2,939,00 At the acquisition date, the following allocation was prepared: Fair value of consideration transferred Book value acquired Excess fair value over book value To in-process research and development To equipment (8-year remaining life) To goodwill (indefinite life) $ 2,042,200 1,766,000 276,200 $ 47,000 99,200 $ 146,200 130,000 Although at acquisition date Procise had expected $47,000 in future benefits from GaugeRite's 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. GaugeRite $(1,340,500) 875,000 139,000 34,500 Sales Cost of goods sold Depreciation expense Other operating expenses Subsidiary income Net income Retained earnings 1/1/21 Net income Dividends declared Retained earnings 12/31/21 Cash Accounts receivable Inventory Investment in GaugeRite Land Equipment (net) Goodwill Total assets Accounts payable Long-term debt Common stock Retained earnings 12/31/21 Total liabilities and equity Procise $ (3,740,650) 1,690,000 336,000 224,250 (279, 600) $ (1,770,000) $ (3,000,000) (1,770,000) 100,000 $ (4,670,000) $ 37,075 907,000 996,000 2,455,925 3,432,500 5,202,500 356,000 $ 13,387,000 $ (232,000) (3,335, 000) (5,150,000) (4,670,000) $(13,387,000) $ (292,000) $ (927,000) (292,000) 26,475 $(1,192,525) $ 67,525 212,000 700,000 727,000 1,835,000 $ 3,541,525 $ (490,000) (800,000) (1,059,000) (1,192,525) $ (3,541,525) Show how Procise derived its December 31, 2021, Investment in GaugeRite account balance. (Amounts to be deducted should be indicated by a minus sign.) Amounts Consideration transferred 1/1/20 Investment balance 12/31/21 Prepare a consolidated worksheet for Procise and GaugeRite as of December 31, 2021. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and credit columns should be entered as positive. Input all amounts as positive values.) Show less Consolidation Entries Accounts Debit Credit Consolidated Totals Sales Cost of goods sold Depreciation expense Other operating expenses Subsidiary income Net Income 12/31/21 12/31/21 Procise GaugeRite $ (3,740,650) $ (1,340,500) 1,690,000 875,000 336,000 139,000 224,250 34,500 (279,600) 0 $ (1,770,000) $ 292,000 Retained earnings 1/1/21 Net Income Dividends declared Retained earnings 12/31/21 $ (3,000,000) $ (927,000) (1,770,000) (292,000) 100,000 26,475 $ (4.670,000) $ (1,192,525) Cash Accounts receivable Inventory Investment in GaugeRite Land Equipment (net) Goodwill Total assets $ 37,075 $ 67,525 907,000 212,000 996,000 700,000 2,455,925 0 3,432,500 727,000 5,202,500 1,835,000 356,000 0 $ 13,387,000 $3,541,525 $ 14,677,000 Accounts payable Long-term debt Common stock-Procise Common stock-GaugeRite Retained earnings 12/31/21 Total liabilities and equity $ (232,000) $ (490,000) (3,335,000) (800,000) (5,150,000) (1,059,000) (4,670,000) (1,192,525) $(13,387,000) $ (3,541,525) $ 14,677,000