On January 1, 2021, Brooks Corporation exchanged $1,183,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,105,000. 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 $204,000 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 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. Income Statement Revenues Cost of goods sold Gain on bargain purchase Depreciation and amortization Equity earnings from Chandler Net income Statement of Retained Earnings Retained earnings, 1/1 Net income (above) Dividends declared Retained earnings, 12/31 Balance Sheet Brooks Corp. Chandler Inc. $ (640,000) $ (587,000) 255,000 (126,000) 150,000 203,000 8 151,000 (199,000) $ (560,000) $ (233,000) $(1,835,000) (560,000) 100,000 $(2,295,000) $ (805,000) (233,000) 40,000 $ (998,000) Current assets Investment in Chandler Trademarks Patented technology Equipment Total assets Liabilities $ 343,000 1,468,000 $ 432,000 e 134,000 221,000 395,000 410,000 341,000 693,000 $ 3,033,000 (203,000) (535,000) (2,295,000) $ 1,404,000 $ (106,000) (300,000) (998,000) $ Common stock Retained earnings, 12/31