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. Sales Cost of 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 Gibson Company Keller Company (950,000) $ (650,000) 650,000 450,000 140,000 30,000 (102,000) $ (262,000) $ (170,000) $ (1,266,000) $ (695,000) (262,000) (170,000) 145,000 45,000 $ (1,383,000) $ (820,000) $ 184,000 $ 60,000 386,000 560,000 540,000 470,000 966,000 120,000 540,000 511,000 450,000 $ 2,707,000 $ 2,080,000 $ (584,000) $ (720,000) (740,000) (470,000) (70,000) (1,383,000) (820,000) $ (2,707,000) $ (2,080,000) Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equities (Note: Parentheses indicate a credit balance.) a. Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller. 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. For the Year Ending December 31, 2021 Consolidation Entries Accounts Gibson Keller Debit Credit Noncontrolling Consolidated Totals Interest $ (950,000) $ 650,000 140,000 (102,000) $ (262,000) $ (650,000) 450,000 30.000 0 (170,000) $ (1,266,000) 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, 1/1/21Keller Net income Dividends declared Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Customer list Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 Total liabilities and equity (262,000) 145,000 $ (1,383,000) $ $ 184,000 $ 386,000 540.000 966,000 120,000 (695,000) (170,000) 45,000 (820,000) 60,000 560,000 470,000 540.000 450,000 511,000 $ $ 2,707,000 $ 2,080,000 (584,000 $ (720,000) (740,000) (470,000) (70,000) (1,383,000) (820,000) $ (2,707,000) $ (2,080,000) $ Complete this question by entering your answers in the tabs below. Required A Required B ow would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 203 ook value (cost of $290,000) to Keller for $250,000 instead of land, as the problem reports? Assume that the build emaining life at the date of transfer. (Do not round intermediate calculations. If no entry is required for a transactio urnal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 > Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year. Note: Enter debits before credits. Accounts Debit Credit Transaction 1 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Complete this question by entering your answers in the tabs below. Required A Required B ow would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 203 ook value (cost of $290,000) to Keller for $250,000 instead of land, as the problem reports? Assume that the build emaining life at the date of transfer. (Do not round intermediate calculations. If no entry is required for a transactio urnal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 > Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year. Note: Enter debits before credits. Accounts Debit Credit Transaction 1 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries