On January Procise Corporatlon acquired percent of the outstanding voting stock of GaugeRite Corporation for
$ cash. On the acquisition date, GaugeRite had the following balance sheet:
At the acquisition date, the following allocation was prepared:
Fair value of consideration transferred
Book value acquired
Excess fair value over book value
To inprocess research and development
To equipment year renaining life
To goodwill indefinite life
Although at acquisition date Procise had expected $ in future benefits from GaugeRite's Inprocess research and development
project, by the end of it was apparent that the research project was a fallure with no future economic benefits.
On December Procise and GaugeRite submitted the following financlal statements for consolidation. There were no Intra
entity payables on that date.
Required:
a Show how Procise derlved its December Investment in GaugeRite account balance.
c Prepare a consolldated worksheet for Proclse and GaugeRite as of December
