#1) Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller.

#2) How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $135,000 book value (cost of $290,000) to Keller for $250,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.

**Please make sure all the answer is correct....

**Please show all steps (how you get each numbers)

Thank you!

The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2020. in exchange for various considerations totaling $750,000. At the acquisition date, the fair value of the noncontrolling interest was $500,000 and Keller's book value was $1,000,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $250,000. This intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its investment in Keller. Gibson sold Keller land with a book value of $75,000 on January 2, 2020, for $160.000. Keller still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $180.000 to Gibson at a price of $300,000. During 2021, intra-entity shipments totaled $350,000, although the original cost to Keller was only $245,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $35.000 at the end of 2021. Gibson Company Keller Company $ (950,880) (650,880) 650, eee 45e,eee 140, eee 30,000 (102,980) $ (262,080) $ (170,000) $ (1,266,880) $ (695, 088) (262,880) (178,888) 145, eee 45,880 $ (1,383,980) $ (820,980) $ 184, eee 60,000 386,080 560, eee 540,880 470, eee 966,080 @ 120,000 540, eee 511,080 450, eee $ 2,787, e8e $ 2,888,888 (584,880) (728, eee) (748, 880) (470,980) (70,980) (1,383,080) (820,880) $ (2,707, eee) $ (2,880,080) Sales Cost goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equities $ $ GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Accounts Gibson Keller Debit Credit Noncontrolling Interest S S (950.000) 650,000 140,000 (102.000) S (262.000) 374.000 S (650.000) 450.000 30.000 0 $ (170,000) Consolidated Totals S (1.250,000) 747.000 182.500 350.000 21,000 12,500 102.000 0 S Sales Cost of goods sold Operating expenses Equity in earnings of Keller Separate company net income Consolidated net income To noncontrolling interest To Gibson Company Retained earnings, 1/1/21Gibson Retained earnings, 1/1/21-Keller Net income Dividends declared 94,200 320,500 (94.200) 226,300 IS S (1.268.000) 106,900 S (1.159.100) 695,000 (262.000) 145.000 (228.300) 145.000 27,000 18.000 IS (695,000) (170,000) 45,000 S (820.000) IS 60,000 560,000 470,000 S (12.404.000) S IS Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Customer list 1.383.000) 184,000 386,000 540.000 980,000 120.000 511.000 244,000 881,000 980,000 85,000 X 21,000 993.000 85.000 27.000 0 OO 540.000 450.000 237,500 > 12.500 575,000 961.000 225.000 S 3.855,000 X $ (1,269,000) (740,000) Total assets Liabilities $ 2.707.000 S (584,000) (740.000) S 2.080.000 S (720.000) (470.000) (70.000) (820.000) 35.000 470.000 70.000 00 Common stock Additional paid-in capital Retained earnings, 12/31/21 Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 0 (1.383.000) 2.203.000 579,400 579,400 (655,600) X S 655,600 X S Total liabilities and equity IS (2.707.000) $ 2.126,900 2.080,000) IS $ 2.176.900 3.905.000 Required A Required B How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $135,000 book value (cost of $290,000) to Keller for $250,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less No Transaction Accounts Debit Credit 1 1 Retained earnings Buildings Accumulated depreciation O 40.000 2 2 Accumulated depreciation Operating expenses pol The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2020. in exchange for various considerations totaling $750,000. At the acquisition date, the fair value of the noncontrolling interest was $500,000 and Keller's book value was $1,000,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $250,000. This intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its investment in Keller. Gibson sold Keller land with a book value of $75,000 on January 2, 2020, for $160.000. Keller still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $180.000 to Gibson at a price of $300,000. During 2021, intra-entity shipments totaled $350,000, although the original cost to Keller was only $245,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $35.000 at the end of 2021. Gibson Company Keller Company $ (950,880) (650,880) 650, eee 45e,eee 140, eee 30,000 (102,980) $ (262,080) $ (170,000) $ (1,266,880) $ (695, 088) (262,880) (178,888) 145, eee 45,880 $ (1,383,980) $ (820,980) $ 184, eee 60,000 386,080 560, eee 540,880 470, eee 966,080 @ 120,000 540, eee 511,080 450, eee $ 2,787, e8e $ 2,888,888 (584,880) (728, eee) (748, 880) (470,980) (70,980) (1,383,080) (820,880) $ (2,707, eee) $ (2,880,080) Sales Cost goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equities $ $ GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Accounts Gibson Keller Debit Credit Noncontrolling Interest S S (950.000) 650,000 140,000 (102.000) S (262.000) 374.000 S (650.000) 450.000 30.000 0 $ (170,000) Consolidated Totals S (1.250,000) 747.000 182.500 350.000 21,000 12,500 102.000 0 S Sales Cost of goods sold Operating expenses Equity in earnings of Keller Separate company net income Consolidated net income To noncontrolling interest To Gibson Company Retained earnings, 1/1/21Gibson Retained earnings, 1/1/21-Keller Net income Dividends declared 94,200 320,500 (94.200) 226,300 IS S (1.268.000) 106,900 S (1.159.100) 695,000 (262.000) 145.000 (228.300) 145.000 27,000 18.000 IS (695,000) (170,000) 45,000 S (820.000) IS 60,000 560,000 470,000 S (12.404.000) S IS Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Customer list 1.383.000) 184,000 386,000 540.000 980,000 120.000 511.000 244,000 881,000 980,000 85,000 X 21,000 993.000 85.000 27.000 0 OO 540.000 450.000 237,500 > 12.500 575,000 961.000 225.000 S 3.855,000 X $ (1,269,000) (740,000) Total assets Liabilities $ 2.707.000 S (584,000) (740.000) S 2.080.000 S (720.000) (470.000) (70.000) (820.000) 35.000 470.000 70.000 00 Common stock Additional paid-in capital Retained earnings, 12/31/21 Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 0 (1.383.000) 2.203.000 579,400 579,400 (655,600) X S 655,600 X S Total liabilities and equity IS (2.707.000) $ 2.126,900 2.080,000) IS $ 2.176.900 3.905.000 Required A Required B How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $135,000 book value (cost of $290,000) to Keller for $250,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less No Transaction Accounts Debit Credit 1 1 Retained earnings Buildings Accumulated depreciation O 40.000 2 2 Accumulated depreciation Operating expenses pol