Required A

Prepare a worksheet to consolidate the separate $2024$ financial statements for Abbey and Bellstar.

Note: Do not round intermediate calculations. For accounts where multiple consolidation entries are required, combine all debit entries 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. Input all amounts as positive values. How would the consolidation entries in requirement $($a$)$ have differed if Abbey had sold a building on January $2,2023,$ with a

$$145,000$ book value $($cost of $$310,000)$ to Bellstar for $$270,000$ 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.

Show less $4$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 $$810,000.$ At the acquisition date, the fair value of the noncontrolling interest was $$540,000$ and Bellstar's book value was $$1,080,000.$ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition$-$date fair value of $$270,000.$ 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 $$85,000$ on January $2,2023,$ for $$180,000.$ Bellstar still holds this land at the end of the current year.

Bellstar regularly transfers inventory to Abbey. In $2023,$ it shipped inventory costing $$208,000$ to Abbey at a price of $$320,000.$ During $2024,$ intra$-$entity shipments totaled $$370,000,$ although the original cost to Bellstar was only $$222,000.$ 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 $$45,000$ at the end of $2024.$

$\backslash$table$[[$Items$,$Abbey Company,$\backslash$table$[[$Bellstar$],[$Company$]]],[$Sales$,$$ $(970,000),$$ $(670,000)],[$Cost of goods sold,$670,000,470,000],[$Operating expenses,$160,000,40,000],[$Equity in earnings of Bellstar,$(96,000),0],[$Net income,$ $(236,000),$$ $(160,000)],[$Retained earnings, $1/1/24,$$ $(1,286,000),$$ $(705,000)],[$Net income $($above$),(236,000),(160,000)],[$Dividends declared,$110,000,55,000],[$Retained earnings, $12/31/24,$$ $(1,412,000),$$ $(810,000)],[$Cash$,$$ $186,000,$$ $80,000],[$Accounts receivable,$390,000,580,000],[$Inventory$,560,000,490,000],[$Investment in Bellstar,$996,000,0],[$Land$,140,000,560,000],[$Buildings and equipment $($net$),513,000,470,000],[$Total assets,$ $2,785,000,$$ $2,180,000],[$Liabilities$,$$ $(613,000),$$ $(790,000)],[$Common stock,$(760,000),(490,000)],[$Additional paid$-$in capital,$0,(90,000)],[$Retained earnings, $12/31/24,(1,412,000),(810,000)],[$Total liabilities and equities,$ $(2,785,000),$$ $(2,180,000)]]$

Note: Parentheses indicate a credit balance.

Required:

a$.$ Prepare a worksheet to consolidate the separate $2024$ financial statements for Abbey and Bellstar.

b$.$ How would the consolidation entries in requirement $($a$)$ have differed if Abbey had sold a building on January $2,2023,$ with a $$145,000$ book value $($cost of $$310,000)$ to Bellstar for $$270,000$ instead of land, as the problem reports? Assume that the building had a $10-$year remaining life at the date of transfer.

PLEASE COMPLETE THE TABLE FOR REQUIRED A WITH THE CORRECT VALUES FOR EACH ACCOUNT, AS WELL AS THE JOURNAL ENTRIES WITH VALUES FOR REQUIRED B$.$