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 $900,000. At the acquisition date, the fair value of the noncontrolling interest was $600,000 and Bellstar's book value was $1,200,000. Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition-date fair value of $300,000. 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 $55,000 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 $227,500 to Abbey at a price of $350,000. During 2024, intra-entity shipments totaled $400,000, although the original cost to Bellstar was only $240,000. 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 $60,000 at the end of 2024. Items Sales Cost of goods sold Operating expenses Equity in earnings of Bellstar Net income Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24 Cash Accounts receivable Inventory Investment in Bellstar Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/24 Total liabilities and equities Note: Parentheses indicate a credit balance. Abbey Company $ (1,000,000) 700,000 190,000 (87,000) $ (197,000) $ (1,316,000) (197,000) 125,000 $ (1,388,000) $ 189,000 396,000 590,000 1,017,000 170,000 516,000 $2,878,000 $ (700,000) (790,000) 0 (1,388,000) Bellstar Company $ (700,000) 500,000 55,000 $ (145,000) $ (720,000) (145,000) 70,000 $ (795,000) $ 60,000 610,000 520,000 0 590,000 500,000 $ 2,280,000 $ (885,000) (520,000) (80,000) (795,000) $ (2,878,000) $ (2,280,000) 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 $160,000 book value (cost of $340,000) to Bellstar for $300,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Required A Required B 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 er and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this a column of the worksheet. Input all amounts as positive values. Sales ABBEY AND BELLSTAR Consolidation Worksheet For the Year Ending December 31, 2024 Consolidation Entries Accounts Abbey Bellstar Debit Credit Noncontrolling Consolidated Interest Totals $ (1,000,000) $ (700,000) 700,000 500,000 $ 190,000 (87,000) (197,000) $ (145,000) 55,000 0 Cost of goods sold Operating expenses Equity in earnings of Bellstar Separate company net income Consolidated net income To noncontrolling interest To Abbey Company Retained earnings, Abbey, 1/1 Retained earnings, Bellstar, 1/1 Net income Dividends declared $ (1,316,000) (720,000) (197,000) 125,000 (145,000) 70,000 Retained earnings, 12/31 $ (1,388,000) $ (795,000) Cash $ 189,000 $ 60,000 Accounts receivable 396,000 610,000 Inventory 590,000 520,000 Investment in Bellstar 1,017,000 Land 170,000 590,000 516,000 500,000 Buildings and equipment (net) Trademark Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31 Noncontrolling interest 1/1 Noncontrolling interest 12/31 Total liabilities and equity $ 2,878,000 $ 2,280,000 $ (700,000) $ (790,000) (885,000) (520,000) (80,000) (1,388,000) (795,000) $ (2,878,000) $ (2,280,000) $ 0 $ 0 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 $160,000 book value (cost of $340,000) to Bellstar for $300,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Complete this question by entering your answers in the tabs below. Required A Required B How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2, 2023, with a $160,000 book value (cost of $340,000) to Bellstar for $300,000 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. 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. Transaction *TA Accounts Debit Credit Clear entry Record entry view consolidation entries < Required A Required B > Show less