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 $2024.$

Items Abbey Company Bellstar Company

Sales $ $(970,000)$ $ $(670,000)$

Cost of goods sold $670,000470,000$

Operating expenses $160,00040,000$

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 $110,00055,000$

Retained earnings, $12/31/24$ $ $(1,412,000)$ $ $(810,000)$

Cash $ $186,000$ $ $80,000$

Accounts receivable $390,000580,000$

Inventory $560,000490,000$

Investment in Bellstar $996,0000$

Land $140,000560,000$

Buildings and equipment $($net$)513,000470,000$

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.