Prepare a consolidated worksheet for Procise and GaugeRite as of December 31, 2018. (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. Negative amounts for the Consolidated Totals column should be entered with a minus sign.)

Thank you!!!

On January 1, 2017, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $2,051,050 cash. On the acquisition date, GaugeRite had the following balance sheet 37,000 113,000 768,000 Cash Accounts payable Long-term debt 180,000 940,000 Accounts receivable omiton stock earnings Land 1,078,00 Equipment (net) 674,06 $ 2,872,000 1,954, $ 2,872,000 At the acquisition date, the following allocation was prepared: Fair value of consideration transferred 2,051,050 299.050 Excess fair value over book value To in-process research and development To equipment (8-year remaining life) s 62,250 96,800 159,050 To goodwill (indefinite life) 140,000 Although project, by the end of 2017, it was apparent that the research project was a failure with no future economic benefits. tacquisition date Procise had expected $62,250 in future benefits from GaugeRite's in-process research and development On December 31, 2018, Procise and GaugeRite submitted the following trial balances for consolidation. There were no intra-entity payables on that date. $(1,186.8a0) Sales 600 Cost of goods sold 1.665.000 717,s00 Othec onerating expenses Subsidiary income 33,500 (288,900) $ (1,680,000) (301,000) Net income Net inc * ings 1/1/18 Dividends declared 1 688 ag0) (301,800) 200,000 26,950 (4,487,5e0) $(1,106,850) Retained earnings 12/31/18 Cash a56.000 Accounts receivable 178.000 809,000 902,000 rternt in GaugeRite Land 3,467,500 737,000 ,6 1.775,000 Gon n(net) S 13,055,500 (283.000) 3,545,050 $ (470,e00) Total assets Accounts payable s uebi 1878 888) (5,150,000) Common stock Retained earnings 12/31/18 (4,487,500) $(13,055,500) (1,106,050) S(3.545,050) Total liabilities and equity a. Show how Procise derived its December 31, 2018, Investment in GaugeRite account balance. c. Prepare a consolidated worksheet for Procise and GaugeRite as of December 31, 2018. Required A Required C Show how Procise derived its December 31, 2018, Investment in GaugeRite account balance. (Amounts to be deducted should be indicated by a minus sign.) Consideration transferred 1/1/17 Investment balance 12/31/18 Required C