acquired a 60 percent interest in Keller on January 1.2017, in exchange for various considerations totaling $870,000. At the The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow Gibson acquisition date, the fair value of th de e noncontrolling interest was $580,000 and Keller's book value was $1,160,000. Keller had iniangibleengamzed oedoin ts books but had an acquisition-date fair valve of $290,000 This Gibson current ye d with a book value of $50.000 on January 2:2017, for $120.000. Keller stll olds this land at the end of the Keller regularly transfers inventory to Gibson In 2017. it shipped inventory costing $238.000 to Gibson at a price of $340.000 During 2018, intra-entity shipments totaled $390.000, although the original cost to Keller was only $253.500 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 $55.000 at the end of 2018 Gibson Company Keller Company Sales Cost of goods sold Operating expenses Equity s (990,e00) (690,000) 690,000 180,000 Keller(9e,000) (210,000) $(1,306,000) (210,800) 490,000 50,000 in earnings of (150,000) (715,000) (150,e00) Net income - $ Retained earnings, 1/1/18 Net income (above) Dividends declared 120,800 6 90 65,000 Retained earnings, 12/31/18 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) (1.396,000)(00 0o) $188,000 100,006 600,000 518,000 394,000 1,002,000 Total assets Liabilities 15,000 49,000 $ 2,839,900 2,288,006 $ (663,000) (900,000)