Saved Help Save & Exit Submit Check my work On January 1, 2018, Brooks Corporation exchanged $969,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $990,000. 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 $174,000 with an ning 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 Therefore, Brooks continuing value. On December 31, 2018, each company submitted the following financial statements for consolidation. Dividends were declared and paid in the same period. potential future spin-off of Chandler, Inc. had Chandler maintain its separate incorporation and independent accounting information system as elements of Brooks Corp. Chandler Inc. Iacome Statement Revenues Cost of goods sold Gain on bargain purchase Depreciation and amortization Equity earnings from Chandler (525,000) (654,000) 234, 000 162,000 $ (605,000) (258, 000) (1,730,000) (690,000) 205, 000 (195, 000) 139, 000 (229,000) Net income Statement of Retained Earnings Retained earnings, 1/1 Net income (above) Dividends declared (605, 000) 250,000 (258,000) 30,000 Retained earnings, 12/31 Balance Sheet Current assets Investment in Chandler Trademarks Patented technology Equipment $ (2,085,000) (918,000) $ 347,000 ,363,000 308,000 147,000 329, 000 652,000 239,000 435,000 Total assets Liabilities Common stock Retained arninne 173 s 2,838,0001,357,000 $ (218,000) (139,0001) (535, 000) (300,000)