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 $$960,000.$ At the acquisition date, the fair value of the noncontrolling interest was $$640,000$ and Bellstar$$s book value was $$1,280,000.$ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition$-$date fair value of $$320,000.$ 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 $$65,000$ on January $2,2023,$ for $$150,000.$ Bellstar still holds this land at the end of the current year.

Bellstar regularly transfers inventory to Abbey. In $2023,$ it shipped inventory costing $$259,000$ to Abbey at a price of $$370,000.$ During $2024,$ intra$-$entity shipments totaled $$420,000,$ although the original cost to Bellstar was only $$273,000.$ 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 $$70,000$ at the end of $2024.$

Items Abbey Company Bellstar Company

Sales $ $(1,020,000)$ $ $(720,000)$

Cost of goods sold $720,000520,000$

Operating expenses $100,00065,000$

Equity in earnings of Bellstar $(81,000)0$

Net income $ $(281,000)$ $ $(135,000)$

Retained earnings, $1/1/24$ $ $(1,336,000)$ $ $(730,000)$

Net income $($above$)(281,000)(135,000)$

Dividends declared $135,00080,000$

Retained earnings, $12/31/24$ $ $(1,482,000)$ $ $(785,000)$

Cash $ $191,000$ $ $80,000$

Accounts receivable $400,000630,000$

Inventory $610,000540,000$

Investment in Bellstar $1,047,0000$

Land $190,000610,000$

Buildings and equipment $($net$)518,000520,000$

Total assets $ $2,956,000$ $ $2,380,000$

Liabilities $ $(664,000)$ $ $(955,000)$

Common stock $(810,000)(540,000)$

Additional paid$-$in capital $0(100,000)$

Retained earnings, $12/31/24(1,482,000)(785,000)$

Total liabilities and equities $ $(2,956,000)$ $ $(2,380,000)$

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 $$170,000$ book value $($cost of $$360,000)$ to Bellstar for $$320,000$ instead of land, as the problem reports? Assume that the building had a $10-$year remaining life at the date of transfer.