On January 1, 2021, Brooks Corporation exchanged $1,177,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,100,000. Chandlers individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $252,000 with an estimated remaining life of six years. The Chandler acquisition was Brookss 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 as 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	$	(658,000	)		$	(618,000	)
Cost of goods sold		225,000				242,000
Gain on bargain purchase		(175,000	)			0
Depreciation and amortization		149,000				158,000
Equity earnings from Chandler		(176,000	)			0
Net income	$	(635,000	)		$	(218,000	)
Statement of Retained Earnings
Retained earnings, 1/1	$	(1,825,000	)		$	(800,000	)
Net income (above)		(635,000	)			(218,000	)
Dividends declared		250,000				30,000
Retained earnings, 12/31	$	(2,210,000	)		$	(988,000	)
Balance Sheet
Current assets	$	220,000			$	394,000
Investment in Chandler		1,498,000				0
Trademarks		170,000				254,000
Patented technology		376,000				447,000
Equipment		668,000				320,000
Total assets	$	2,932,000			$	1,415,000
Liabilities	$	(187,000	)		$	(127,000	)
Common stock		(535,000	)			(300,000	)
Retained earnings, 12/31		(2,210,000	)			(988,000	)
Total liabilities and equity	$	(2,932,000	)		$	(1,415,000	)

Note: Parentheses indicate a credit balance.

a. Determine the following account balances:

• Gain on bargain purchase.
• Earnings from Chandler.
• Investment in Chandler.

b. Prepare a December 31, 2021, consolidated worksheet for Brooks and Chandler.