\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline Accounts & & Anvey & & Denstar & & vepit & creait & Interest & & otals: \\ \hline Sales & $ & (920,000) & $ & (620,000) & $ & 320.000 & & & $1 & 1,220,000 \\ \hline Cost of goods sold & & 620,000 & & 420,000 & & & & & & 1,040,000 \\ \hline Operating expenses & & 110,000 & & 85,000 & & & & & & \\ \hline Equity in earnings of Bellstar & & (69,000) & & 0 & & 69,000 & & & & 0 \\ \hline Separate company net income & $ & (259,000) & $ & (115,000) & & & & & & \\ \hline \multicolumn{11}{|l|}{ Consolidated net income } \\ \hline \multicolumn{11}{|l|}{ To noncontrolling interest } \\ \hline \multicolumn{11}{|l|}{ To Abbey Company } \\ \hline Retained earnings, Abbey, 1/1 & s & (1,236,000) & & & & & & & & \\ \hline Retained earnings, Bellstar, 1/1 & & & & (680,000) & & & & & & \\ \hline Net income & & (259,000) & & (115,000) & & & & & & \\ \hline Dividends declared & & 130,000 & & 30,000 & & & & & & \\ \hline Retained earnings, 12/31 & $ & (1,365,000) & $ & (765,000) & & & & & & \\ \hline Cash & s & 181,000 & $ & 80,000 & & & & & & \\ \hline Accounts receivable & & 380,000 & & 530,000 & & & & & & \\ \hline Inventory & & 510,000 & & 440,000 & & & & & & \\ \hline Investment in Bellstar & & 903,000 & & & & & & & & \\ \hline Land & & 230,000 & & 510,000 & & & & & & \\ \hline Buildings and equipment (net) & & 508,000 & & 420,000 & & & & & & \\ \hline \multicolumn{11}{|l|}{ Trademark } \\ \hline Total assets & 5 & 2.712,000 & $ & 1,980,000 & & & & & & \\ \hline Liabilities: & $ & (637,000) & $ & (695,000) & & & & & & \\ \hline Common stock & & (710,000) & & (440,000) & & & & & & \\ \hline Additional paid-in capital & & & & (80,000) & & & & & & \\ \hline Retained earnings, 12/31 & & (1,365,000) & & (765,000) & & & & & & \\ \hline \multicolumn{11}{|l|}{ Noncontrolling interest 1/1 } \\ \hline \multicolumn{11}{|l|}{ Noncontrolling interest 12/31} \\ \hline Total liabilitios and equity & s & (2,712,000) & s & (1,980,000) & s & 389,000 & 0 & & & \\ \hline \end{tabular} Required B > Note: Parentheses indicate a credit balance. Required: a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Belistar. b. How would the consolidation entries in requirement (a) have differed if Abbey had sold a bulding on January 2.2023 , with a $120,000 book value (cost of $260,000 ) to Bellstar for $220,000 instead of fand, as the problem reports? Assume that the bulding had a to-year remaining life at the date of transfer. Complete this question by entering your answers in the tabs below. Prepare a workshest to consolidate the separate 2024 financial statements for Abbey and Belistar. colume of the worksheit. Input all amounte as positive values. The individual financial statements for Abbey Company and Bellstar Company for the year ending December 31, 2024, follow. Abbey acquired a 60 percent interest in Bellstar on January 1,2023, in exchange for various considerations totaling $660,000. At the acquisition date, the fair value of the noncontrolling interest was $440,000 and Bellstar's book value was $880,000. Bellstar had developed intemally a trademark that was not recorded on its books but had an acquisition-date fair value of $220,000. This intangible asset is being amortized over 20 years. Abbey uses the partial equity method to account for its investment in Bellstar. Abbey sold Bellstar land with a book value of $60,000 on January 2,2023 , for $130,000. Bellstar still holds this land at the end of the current year. Bellstar regularly transfers inventory to Abbey. In 2023, it shipped inventory costing $162,000 to Abbey at a price of $270,000. During 2024 , intra-entity shipments totaled $320,000, although the original cost to Bellstar was only $224,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $65,000 at the end of 2024. Note: Parentheses indicate a credit balance. How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2,2023, with a $120,000 book value ( cost of $260,000) to Bellstar for $220,000 instead of land, as the problem reports? Assume that the building had a 10 -year remaining life at the date of transfer. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline Accounts & & Anvey & & Denstar & & vepit & creait & Interest & & otals: \\ \hline Sales & $ & (920,000) & $ & (620,000) & $ & 320.000 & & & $1 & 1,220,000 \\ \hline Cost of goods sold & & 620,000 & & 420,000 & & & & & & 1,040,000 \\ \hline Operating expenses & & 110,000 & & 85,000 & & & & & & \\ \hline Equity in earnings of Bellstar & & (69,000) & & 0 & & 69,000 & & & & 0 \\ \hline Separate company net income & $ & (259,000) & $ & (115,000) & & & & & & \\ \hline \multicolumn{11}{|l|}{ Consolidated net income } \\ \hline \multicolumn{11}{|l|}{ To noncontrolling interest } \\ \hline \multicolumn{11}{|l|}{ To Abbey Company } \\ \hline Retained earnings, Abbey, 1/1 & s & (1,236,000) & & & & & & & & \\ \hline Retained earnings, Bellstar, 1/1 & & & & (680,000) & & & & & & \\ \hline Net income & & (259,000) & & (115,000) & & & & & & \\ \hline Dividends declared & & 130,000 & & 30,000 & & & & & & \\ \hline Retained earnings, 12/31 & $ & (1,365,000) & $ & (765,000) & & & & & & \\ \hline Cash & s & 181,000 & $ & 80,000 & & & & & & \\ \hline Accounts receivable & & 380,000 & & 530,000 & & & & & & \\ \hline Inventory & & 510,000 & & 440,000 & & & & & & \\ \hline Investment in Bellstar & & 903,000 & & & & & & & & \\ \hline Land & & 230,000 & & 510,000 & & & & & & \\ \hline Buildings and equipment (net) & & 508,000 & & 420,000 & & & & & & \\ \hline \multicolumn{11}{|l|}{ Trademark } \\ \hline Total assets & 5 & 2.712,000 & $ & 1,980,000 & & & & & & \\ \hline Liabilities: & $ & (637,000) & $ & (695,000) & & & & & & \\ \hline Common stock & & (710,000) & & (440,000) & & & & & & \\ \hline Additional paid-in capital & & & & (80,000) & & & & & & \\ \hline Retained earnings, 12/31 & & (1,365,000) & & (765,000) & & & & & & \\ \hline \multicolumn{11}{|l|}{ Noncontrolling interest 1/1 } \\ \hline \multicolumn{11}{|l|}{ Noncontrolling interest 12/31} \\ \hline Total liabilitios and equity & s & (2,712,000) & s & (1,980,000) & s & 389,000 & 0 & & & \\ \hline \end{tabular} Required B > Note: Parentheses indicate a credit balance. Required: a. Prepare a worksheet to consolidate the separate 2024 financial statements for Abbey and Belistar. b. How would the consolidation entries in requirement (a) have differed if Abbey had sold a bulding on January 2.2023 , with a $120,000 book value (cost of $260,000 ) to Bellstar for $220,000 instead of fand, as the problem reports? Assume that the bulding had a to-year remaining life at the date of transfer. Complete this question by entering your answers in the tabs below. Prepare a workshest to consolidate the separate 2024 financial statements for Abbey and Belistar. colume of the worksheit. Input all amounte as positive values. The individual financial statements for Abbey Company and Bellstar Company for the year ending December 31, 2024, follow. Abbey acquired a 60 percent interest in Bellstar on January 1,2023, in exchange for various considerations totaling $660,000. At the acquisition date, the fair value of the noncontrolling interest was $440,000 and Bellstar's book value was $880,000. Bellstar had developed intemally a trademark that was not recorded on its books but had an acquisition-date fair value of $220,000. This intangible asset is being amortized over 20 years. Abbey uses the partial equity method to account for its investment in Bellstar. Abbey sold Bellstar land with a book value of $60,000 on January 2,2023 , for $130,000. Bellstar still holds this land at the end of the current year. Bellstar regularly transfers inventory to Abbey. In 2023, it shipped inventory costing $162,000 to Abbey at a price of $270,000. During 2024 , intra-entity shipments totaled $320,000, although the original cost to Bellstar was only $224,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $65,000 at the end of 2024. Note: Parentheses indicate a credit balance. How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2,2023, with a $120,000 book value ( cost of $260,000) to Bellstar for $220,000 instead of land, as the problem reports? Assume that the building had a 10 -year remaining life at the date of transfer. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year. Note: Enter debits before credits