On January 1, 2021, Brooks Corporation exchanged $1,135,000 fair-value consideration for all of the outstanding voting stock of Check my work Chandler, Inc. At the acquisition date, Chandler had a book value equal to $945,000. Chandler's individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $342.000 with an estimated remaining life of six years. The Chandler acquisition was Brooks's only business combination for the year, In case expected synergies did not materialize, Brooks Corporation wished to prepare for a potential future spin off of Chandler, Inc. Therefore, Brooks had Chandler maintain its separate incorporation and independent accounting Information system os elements of continuing value On December 31, 2021, each company submitted the following financial statements for consolidation Dividends were declared and paid in the same period Brooks Corp. Chandler Inc. Income Statement Revenues $ (775,500) $ (561,000) Cost of goods sold 220,000 188,000 Gain on bargain purchase (152,000) Depreciation and amortization 138,000 168,000 Equity earnings from Chandler (148,000) Net income $ (717,500) $ (205,000) Statement of Retained Earnings Retained earnings, 1/1 $(1,820,000) $ (645,000) Net income (above) (717,500) (205,000) Dividends declared 250,000 30,000 Retained earnings, 12/31 $(2,287,500) (820,000) Balance Sheet $ 490, 500 $ 150,000 Current assets 0 1,405,000 Investment in Chandler 123,000 223,000 Trademarks 306,000 493,000 Patented technology 0 0 $ 5 of 5 WHE Next