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 $$360,000.$ At the acquisition date, the fair value of the noncontrolling interest was $$240,000$ and Bellstar$$s book value was $$470,000.$ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition$-$date fair value of $$130,000.$ 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 $$60,000$ on January $2,2023,$ for $$120,000.$ Bellstar still holds this land at the end of the current year.

Bellstar regularly transfers inventory to Abbey. In $2023,$ it shipped inventory costing $$108,000$ to Abbey at a price of $$180,000.$ During $2024,$ intra$-$entity shipments totaled $$230,000,$ although the original cost to Bellstar was only $$161,000.$ 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 $$50,000$ at the end of $2024.$

Items Abbey Company Bellstar Company

Sales $ $(830,000)$ $ $(530,000)$

Cost of goods sold $530,000330,000$

Operating expenses $130,00040,000$

Equity in earnings of Bellstar $(96,000)0$

Net income $ $(266,000)$ $ $(160,000)$

Retained earnings, $1/1/24$ $ $(1,146,000)$ $ $(635,000)$

Net income $($above$)(266,000)(160,000)$

Dividends declared $130,00040,000$

Retained earnings, $12/31/24$ $ $(1,282,000)$ $ $(755,000)$

Cash $ $172,000$ $ $90,000$

Accounts receivable $362,000440,000$

Inventory $420,000350,000$

Investment in Bellstar $783,0000$

Land $140,000420,000$

Buildings and equipment $($net$)499,000330,000$

Total assets $ $2,376,000$ $ $1,630,000$

Liabilities $ $(474,000)$ $ $(455,000)$

Common stock $(620,000)(350,000)$

Additional paid$-$in capital $0(70,000)$

Retained earnings, $12/31/24(1,282,000)(755,000)$

Total liabilities and equities $ $(2,376,000)$ $ $(1,630,000)$

Note: Parentheses indicate a credit balance.

Required:

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

How would the consolidation entries in requirement $($a$)$ have differed if Abbey had sold a building on January $2,2023,$ with a $$75,000$ book value $($cost of $$170,000)$ to Bellstar for $$130,000$ instead of land, as the problem reports? Assume that the building had a $10-$year remaining life at the date of transfer.