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 Bellstars 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.

Items	Abbey Company	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:

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 $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.

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.

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ABBEY AND BELLSTAR
Consolidation Worksheet
For the Year Ending December 31, 2024
			Consolidation Entries
Accounts	Abbey	Bellstar	Debit	Credit	Noncontrolling Interest	Consolidated Totals
Sales	$(970,000)	$(670,000)	$370,000			$1,270,000
Cost of goods sold	670,000	470,000	12,000	10,000
Operating expenses	160,000	40,000
Equity in earnings of Bellstar	(96,000)	0
Separate company net income	$(236,000)	$(160,000)
Consolidated net income
To noncontrolling interest
To Abbey Company
Retained earnings, Abbey, 1/1	$(1,286,000)
Retained earnings, Bellstar, 1/1		(705,000)
Net income	(236,000)	(160,000)
Dividends declared	110,000	55,000
Retained earnings, 12/31	$(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
Land	140,000	560,000
Buildings and equipment (net)	513,000	470,000
Trademark
Total assets	$2,785,000	$2,180,000
Liabilities	$(613,000)	$(790,000)
Common stock	(760,000)	(490,000)
Additional paid-in capital		(90,000)
Retained earnings, 12/31	(1,412,000)	(810,000)
Noncontrolling interest 1/1
Noncontrolling interest 12/31
Total liabilities and equity	$(2,785,000)	$(2,180,000)	$382,000	$10,000