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On January 1, 2021, Brooks Corporation exchanged $1,259,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler

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On January 1, 2021, Brooks Corporation exchanged $1,259,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,145,000 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 $264.000 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 Brooks Corp. Chandler Inc. $ (553,000) 196,000 0 $ (662,000) 173,000 (150,000) 140,000 (166,000) $ (665,000) 147,000 $ (210,000) 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 Current assets Investment in Chandler Trademarks Patented technology Equipment Total assets Liabilities Common stock Retained earnings, 12/31 Total liabilities and equity $(1,800,000) (665,000) 200,000 $(2,265,000) $ (845,000) (210,000) 50,000 $(1,005,000) $ 371,000 1,525,000 115,000 341,000 683,000 $ 3,035,000 $ (235,000) (535,000) (2,265,000 $(3,035,000) $ 528,000 @ 225,000 412,000 310,000 $ 1,475,000 $ (170,000) (300,000) (1,095, 000) $(1,475,000) ND 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

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