Save & EX Submit On January 1, 2021, Brooks Corporation exchanged $1,235,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,185,000. Chandler's individual assets and liabilities had Check my work fair values equal to their respective book values except for the patented technology account, which was undervalued by $246,000 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. Income Statement Chandler Inc. Revenues $ (466,000) $ (671,000) Cost of goods sold 252,000 204,000 Gain on bargain purchase (196,000) Depreciation and amortization 139,000 177,000 Equity earnings from Chandler (249,000) Net income $ (520,000) $ (290,000) Statement of Retained Earnings Retained earnings, 1/1 $(1,830,000) $ (885,000) Net Income (above) (520,000) (290,000) Dividends declared 300,000 60,000 $(2,050,000) $(1.115,000) Retained earnings, 12/31 Balance Sheet 142,000 422,000 Current assets 1,620,000 Investment in Chandler 198,000 291,000 Trademarks 307,000 455,000 Patented technology 625,000 398,000 Equipment Next 0 0 $ $ 0 Help Trademarks Patented technology Equipment Total assets Liabilities Common stock Retained earnings, 12/31 Total liabilities and equity AFVV 198,000 307,000 625,000 $ 2,892,000 $ (307,000) (535,000) (2.050,000) $(2,892,000) 291,000 455,000 398,000 $ 1,566,000 $ (151,000) (300,000) (1,115,000) $(1,566,000) ok Note: Parentheses indicate a credit balance. ht nces 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. Complete this question by entering your answers in the tabs below. Required A Required B Determine the following account balances. (Input all amounts as positive values.) Amounts Accounts 5 of 5 BE Submit Check my work Required A Required B Determine the following account balances. (Input all amounts as positive values.) Accounts Amounts Gain on bargain purchase Equity earings in Chandler Investment in Chandler 12/31/21 Recured Required B 5 of 5 HE
