Problem $3-33($Algo$)($LO $3-3,3-4,3-6)$

On January $1,2024,$ Brooks Corporation exchanged $$1,193,000$ fair$-$value consideration for all of the outstanding voting stock of Chandler, Incorporated. At the acquisition date, Chandler had a book value equal to $$980,000.$ Chandler$$s individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $$348,000$ 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.

AccountsBrooks CorporationChandler IncorporatedIncome Statement$$Revenues$ $(629,000)$$ $(577,000)$Cost of goods sold$189,000175,000$Gain on bargain purchase$(135,000)0$Depreciation and amortization$147,000157,000$Equity earnings from Chandler$(187,000)0$Net income$ $(615,000)$$ $(245,000)$Statement of Retained Earnings$$Retained earnings, $1/1$$ $(1,670,000)$$ $(680,000)$Net income $($above$)(615,000)(245,000)$Dividends declared$100,00040,000$Retained earnings, $12/31$$ $(2,185,000)$$ $(885,000)$Balance Sheet$$Current assets$ $264,000$$ $310,000$Investment in Chandler$1,475,0000$Trademarks$179,000214,000$Patented technology$359,000415,000$Equipment$653,000384,000$Total assets$ $2,930,000$$ $1,323,000$Liabilities$ $(210,000)$$ $(138,000)$Common stock$(535,000)(300,000)$Retained earnings, $12/31(2,185,000)(885,000)$Total liabilities and equity$ $(2,930,000)$$ $(1,323,000)$

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.