On January $1,2024,$ Brooks Corporation exchanged $$1,177,000$ fair$-$value consideration for all of the outstanding voting stock of Chandler, Incorporated. At the acquisition date, Chandler had a book value equal to $$1,100,000.$ Chandler$$s individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $$252,000$ 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, Incorporated. Therefore, Brooks had Chandler maintain its separate incorporation and independent accounting information system as elements of continuing value.

On December $31,2024,$ each company submitted the following financial statements for consolidation. Dividends were declared and paid in the same period.

Accounts Brooks Corporation Chandler Incorporated

Income Statement

Revenues $ $(658,000)$ $ $(618,000)$

Cost of goods sold $225,000242,000$

Gain on bargain purchase $(175,000)0$

Depreciation and amortization $149,000158,000$

Equity earnings from Chandler $(176,000)0$

Net income $ $(635,000)$ $ $(218,000)$

Statement of Retained Earnings

Retained earnings, $1/1$ $ $(1,825,000)$ $ $(800,000)$

Net income $($above$)(635,000)(218,000)$

Dividends declared $250,00030,000$

Retained earnings, $12/31$ $ $(2,210,000)$ $ $(988,000)$

Balance Sheet

Current assets $ $220,000$ $ $394,000$

Investment in Chandler $1,498,0000$

Trademarks $170,000254,000$

Patented technology $376,000447,000$

Equipment $668,000320,000$

Total assets $ $2,932,000$ $ $1,415,000$

Liabilities $ $(187,000)$ $ $(127,000)$

Common stock $(535,000)(300,000)$

Retained earnings, $12/31(2,210,000)(988,000)$

Total liabilities and equity $ $(2,932,000)$ $ $(1,415,000)$

Note: Parentheses indicate a credit balance.

Required:

Determine the following account balances:

Gain on bargain purchase.

Earnings from Chandler.

Investment in Chandler.

Prepare a December $31,2024,$ consolidated worksheet for Brooks and Chandler.