S The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2020, in exchange for various considerations totaling $540,000. At the acquisition date, the fair value of the noncontrolling interest was $360,000 and Keller's book value was $710,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $190,000. This intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its investment in Keller. Gibson sold Keller land with a book value of $90,000 on January 2, 2020, for $180,000. Keller still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $144,000 to Gibson at a price of $240,000. During 2021, intra-entity shipments totaled $290,000, although the original cost to Keller was only $203,000. 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 $50,000 at the end of 2021. Gibson Company Keller Company Sales Cost of goods sold Operating expenses $ (890,000) $ (590,000) 590,000 190,000 390,000 70,000 Equity in earnings of Keller (78,000) 0 Net income (above) Net income Retained earnings, 1/1/21 Dividends declared $ (188,000) $ (130,000) $ (1,206,000) (188,000) $ (665,000) (130,000) 115,000 70,000 Retained earnings, 12/31/21 $ (1,279,000) $ (725,000) $ 178,000 $ 100,000 374,000 500,000 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equities 480,000 849,000 200,000 505,000 $ 2,586,000 410,000 0 480,000 390,000 $ 1,880,000 $ (627,000) $ (655,000) (680,000) 0 (1,279,000) (410,000) (90,000) (725,000) $ (2,586,000) $ (1,880,000) (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 $105,000 book value (cost of $230,000) to Keller for $190,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.