Hello need help with this assignment. I don't have the function to check my answers as I go along.

Problem 5-35 (LO 5-2, 5-3, 5-4, 5-5, 5-6, 5-7] The individual nancial statements for Gibson Company and Keller Company for the year ending December 31. 2015, follow. Gibson acquired a 60 percent interest in Keller on January 1. 2014, in exchange for various considerations totaling $990,000. At the acquisition date, the fair value of the noncontrolling interest was $660,000 and Keller's book value was $1,320,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $330,000. This intangible asset is being amortized over 20 years. Gibson sold Keller land with a book value of $?0,000 on January 2, 2014. for $160,000. Keller still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2014, it shipped inventory costing $243,000 to Gibson at a price of $380,000. During 2015. intra-entity shipments totaled $430,000, although the original cost to Keller was only $258,000. 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 $30,000 at the end of 2015. Gibson Keler Company Company Sales $(1,030.000} $ (T30,000} Cost of goods sold 730,000 530,000 Operating expenses 110.000 T0,000 Equity in eamings of Keller Company [T8,000} 0 Net income $ {268,000} $ {130.000} Retained earnings, 1J'1J'15 $0,346,000} $ 035,000] Net incc me [above] {268.000} {130,000} Dividends declared 140,000 40,000 Retained earnings, 121311115 $0,474,000} 55 {625.000} Cash $ 192,000 $ 90.000 Accounts receivable 402.000 640,000 Inventory 620,000 550,000 lnvestrnent in Keller Company 1,065,000 0 Land 200,000 620,000 Buildings and equipment (net) 519.000 530,000 Total assets 5 2,998,000 $ 2,430,000 Liabilities $ {704.000} $ {905,000} Common stock {820,000} {550,000} Additional paid-in capital 0 (T0,000} Retained eaminoa. 12F31f15 r1.4'r4.nnm (325.com Liabilities s (704.000) 5 (955.0001 Common stock (820.000) (550.000) Additional paid-in capital 0 (70.000) Retained eam'ings. 12131115 (1 .4?4.000) (025.000) Total liabilities and equities $(2.998.000) 542.430.000) (Note: Parenlheeee indicate a credit balance.) a. Prepare a worksheet to consolidate the separate 2015 nancial statements for Gibson and Keller. [For accounts where multiple consolidation entries are required, combine all debit entes Into one amount and enter this amount In the debit column of the worksheet. Similarly. combine all credit entries into one amount and enter this amount In the credit column of the worksheet.) Sales $ (1.030.000) (730.000) Cost ol goods sold 730.000 580.000 Operating expenses 110.000 70.000 Equity in earnings of Keller (78.000) 0 Separate company net income $ (268.000) $ (130.000) Consolidated net income To nonmntrnlling interest To parent Retained earnings. 1f1f15Gibson $ (1.346.000) Retained earnings. 1f1f15Keller (735.000) Net income (268.000) (130.000) Dividends declared 140.000 40.000 Retaired ean'lings. 12.131115 $ (1,474.000) $ (325.000) Retained sen-tings, 12131315 $ (1,434,000) $ (325,000) Cash $ 192,000 $ 90,000 Amounts reoeivahle 402,000 640,000 Inventory 620,000 550,000 Investment in Keller 1,065,000 Land 200,000 620,000 Buildings and equipment (net) 519,000 530,000 Customer liat Totalaaaets $ 2,998,000 $ 2,430,000 Liabilities $ (704,000) $ (985,000) Common stock (020,000) (550,000) Additional paid-in tapital (70,000) Retained earnings, 12.91115 (1,434,000) (525,000) Not in Keller, 111115 Not in Keller, 12131.05 Total liabilities and equity $ (2,996,000) $ (2,430,000) b. How would the consolidation entries in requirement is) have differed if Gibson had sold a building with a $175,000 book value (oost of?0,000) tn Keller for $330,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. {If no entry Is required tor a transactionl'mnt, select "No Journal entry required\" In the first account field.) (1) Prepare entry 'TA 1 b. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $1?5.000 book value [cost of $3?0.000) to Keller for $330,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. (If no entry is required for a transactlc nlevent, select "No journal entry required" In the rst account eld.] {1) Prepare entry 'TA 1 {2) Prepare entry 'TA (Altemative) 2 {3) Prepare entry ED 3 GIBSON AND KELLER Consolidation Worksheet Year Ending December 31, 2015 Consolidation Entries Accounts Gibson Keller Sales Cost of goods sold Operating Expenses Equity in earnings of Keller $ (1,030,000) $ $ 730,000 $ $ 110,000 $ $ (78,000) $ (730,000) 530,000 70,000 - Separate company net income $ (130,000) (268,000) $ Debit $ $ $ $ Credit 400,000 34,400 $ 16,500 78,000 426,600 Consolidated net income To noncontrolling interest To Parent Retained earnings, 1/1/15Gibson $ (1,346,000) $ 55,860 (735,000) $ 735,000 Retained earnings, 1/1/15Keller Net Income Dividend declared $ $ (268,000) $ 140,000 $ (130,000) 40,000 Retained earnings, 12/31/15 $ (1,474,000) $ (825,000) Cash Accounts receivable Inventory Investment in Keller Land Building and equipment (net) Customer list $ $ $ $ $ $ Total assets $ Liabilities Common stock Additional paid in capital Retained earnings, 12/31/15 NCI in Keller, 1/1/15 NCI in Keller, 12/31/15 $ (704,000) $ (820,000) $ $ (1,474,000) Total liabilities and equity $ $ 192,000 402,000 620,000 1,065,000 200,000 519,000 $ $ $ $ $ $ 2,998,000 $ $ $ $ $ 90,000 640,000 550,000 - $ 620,000 530,000 $ $ 24,000 $ $ 24,000 $ $ 30,000 34,400 1,065,000 90,000 83,500 $ 16,500 2,430,000 (985,000) $ (550,000) $ (70,000) $ (825,000) (2,998,000) $ (2,430,000) $ 40,000 550,000 70,000 $ 400,760 2,087,260 $ 2,087,260 NonControlling Interest $ $ $ $ Consolidated Totals $ $ $ $ (1,360,000) 867,800 196,500 - $ (42,280) $ $ (295,700) 42,280 (253,420) $ (1,290,140) $ - $ 16,000 $ (253,420) 140,000 $ (1,403,560) $ $ $ $ $ $ $ 282,000 1,012,000 1,135,600 24,000 730,000 1,049,000 67,000 $ 4,299,600 $ $ $ $ (1,649,000) (820,000) (1,403,560) (400,760) (427,040) $ (427,040) $ (4,299,600) (1) Unrealized Gross Profit at the end of year 2014 (4) Unrealized Gross Profit at the end of year 2015 380000 430000 247000 258000 133000 172000 35% 40% 26600 34400 Excess of Fair Value Over Book Value Fair Value Add: Cash Consideration Less: Book Value Excess of Fair Value Over Book Value Amortization of Excess Fair Value in 20 Years (5) (6) $ $ $ $ $ 330000/20 $ 660,000 990,000 1,650,000 1,320,000 330,000 16,500 Non Controlling Interest of Keller Income for 2015 Income for 2015 Less: Fair Value Amortization Less: Unrealized Gross Profit from 2015 Inventory Sale Add: Unrealised Gross Profit from 2014 Inventory Sale Adjusted Income for 2015 $ $ $ $ $ 130,000 (16,500) (34,400) 26,600 105,700 Non Controlling Interest (40%) $ 42,280 Patents are amortized Yearly Gibson's Share of Amortization @ 60% Unrealized net Income for 2015 Gibson's Share of Unrealized Net Income @ 60% Total Share $ $ $ $ $ 16,500 9,900 26,600 15,960 25,860 Intra entity bebt 40000 (3) Gain On transfer of Land (7) Customer List Controlling Interest @ 60% Non Controlling Interest @ 40% 160000-70000 90000 $ 83,500 50100 33400 Transaction Consolidating Entries (1) Prepare entry *TA 1 Building (330000-175000) Retained earnings of Gibson 1/1/2015 (155000 - 15500) Accumulated depreciation (Removing excess depreciation on transfer of building and recording asset at historical cost) (2) Prepare entry *TA (Alternative) 2 Debit Credit $ 155,000 $ 139,500 $ 294,500 No Entry (3) Prepare entry ED 3 Accumulated depreciation Depreciation (Removing excess depreciation on transfer of building) $ 15,500 $ 15,500 Building Sold instead of Land Book Value of Building Remaining Useful Life in Years Gain on transfer of building 175000 10 330000-175000 155000 Depreciation for the year on Buiding to be charged on Transfer Price Depreciation 330000/10 33000 Depreciation for the Year on Building to be charged on Historical Cost Depreciation 175000/10 17500 Excess Depreciation Charged 33000-17500 15500 Sales (1,030,000) (730,000) 400.0003 (1.360.000)! Cost of goods sold 730,000 530,000 34,400.} 420,600! 06th Operating expenses 110,000 70,000 10,500.} 100,500.' Equity in earnings of Keller (70,000) 0 70,0004 J Separate company net income (283,000) $ (130,000) Consolidated net income (295,700) To nonwntrulling interest (42,280\" 42,230J To parent (253,420) Retained earnings. 1M\" 5Gibeon {1.343.000} 55.830X (1.290.140): Retained earnings, WitsKeller (755,000) 735W J Net income (200,000) (150,000) (253-420).! Dividends declared 140,000 40,000 24,000.] 10,00w 140,000J Retained eemings, 12.431315 (1 #711,000) $ (825,000) (1,403,560) Cash 192,000 $ 90.000 282,000J Accounts receivable 402,000 040,000 30,000'} 1,012,000.] Inventory 620,000 550,000 54.400: 1,135,000.} Investment in Keller 1,065,000 24,0004 1.065.000X 24,000x Lend 200,000 020,000 90,000.} 730,000.] Buildings and equipment (net) 519.000 530.000 1 049.000.} m\" .. .s........ .. 5......\" \"2..., Accounts renewable 402.000 640.000 30.0004 1 .012,0w lnve ntury 020.000 550.000 54.400: 1.135.000J Investment in Keller 1.065.000 24,000J 1.065.000\" 24,0\")! Lend 200.000 620.000 90.000'4 130.0004 Buildings and equipment (not) 519.000 530.000 1.049.000J Customer list 83.500! 16.500J 61.000x Total assets 5 2.993.000 0 2.430.000 4.209.600 Liabilities 5 (704.000) 5 (955.000) 40.noux (1.049.000)! Common stock (020.000) (550.000) 550.000.} (920.000)J Additional paid-in capital (70.000) 70W J Retained eemings. 12131115 (1 1174.000) (025.000) (1 .400.560)x NCI in Keller, 111115 400.780! (400380\" J NCI in Keller. 12131115 (427.040)! (427.040)! Total liabilities and equity 5 (2.990.000) 5 (2.430.000) 2.001.260 2.107.260 (4.299.600) *Red text indicates no response was expected in a cell or a Formula-based calculation is incorrect; no points deducted. b. How would the consolidation 4.2-. --... . entries in requ . A... m.-. . irement (e) have differed if Gibson had sold a building with a b. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $1?5,000 book value (cost of $3?0,000} to Keller for $330,000 instead of land. as the problem reports? Assume that the building had a 10-year remaining life at the date oftransfer. (If no entry ls required for s transacontevent. select \"No loun'ral entry required\" In the rst account eld.) (1} Prepare entry \"TA 1 Buldings J: Retained emhge J 139.500.] Annurmletad depreciation J (2} Prepare entry \"TA (Alternative) (3} Prepare entry ED 3 Annurmletad depreciation J 15.500.) 15,500.] Score: 57.62/100 Points 57.62 96 ( Question 1 (of 1) v ) Award: 5162 out of 100.00 points Problem 5-35 (LO 5-2, 5-3, 5-4. 5-5, 56, 5-7) The individual nancial statements for Gibson Gompa ny and Keller lCompany for the year ending December 31, 2015, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2014, in exchange for various considerations totaling $990,000. At the acquisition date, the fair value of the noncontrolling interest was $660,000 and Keller's book value was $1,320,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $330,000. This intangible asset is being amortized over 20 years. Gibson sold Keller land with a book value of $70,000 on January 2, 2014, for $160,000. Keller still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2014, it shipped inventory costing 3241000 to Gibson at a price of $380,000. During 2015, intra-entity shipments totaled $430,000, although the original cost to Keller was only $258,000. 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 $30,000 at the end of 2015. Gibson Keller Company Company Sales $(1,030,000) $ (\"0.000) Cost of goods sold ?30,000 530,000 Operating expenses 110,000 T0,000 Equity in earnings of Keller Company 08,000) 0 Net income 5 (255.000) $ (130,000)