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 $$660,000.$ At the acquisition date, the fair value of the noncontrolling interest was $$440,000$ and Bellstar$$s book value was $$880,000.$ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition$-$date fair value of $$220,000.$ 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 $$60,000$ on January $2,2023,$ for $$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 $$162,000$ to Abbey at a price of $$270,000.$ During $2024,$ intra$-$entity shipments totaled $$320,000,$ although the original cost to Bellstar was only $$224,000.$ 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 $$65,000$ at the end of $2024.$

Items Abbey Company Bellstar Company

Sales $ $(920,000)$ $ $(620,000)$

Cost of goods sold $620,000420,000$

Operating expenses $110,00085,000$

Equity in earnings of Bellstar $(69,000)0$

Net income $ $(259,000)$ $ $(115,000)$

Retained earnings, $1/1/24$ $ $(1,236,000)$ $ $(680,000)$

Net income $($above$)(259,000)(115,000)$

Dividends declared $130,00030,000$

Retained earnings, $12/31/24$ $ $(1,365,000)$ $ $(765,000)$

Cash $ $181,000$ $ $80,000$

Accounts receivable $380,000530,000$

Inventory $510,000440,000$

Investment in Bellstar $903,0000$

Land $230,000510,000$

Buildings and equipment $($net$)508,000420,000$

Total assets $ $2,712,000$ $ $1,980,000$

Liabilities $ $(637,000)$ $ $(695,000)$

Common stock $(710,000)(440,000)$

Additional paid$-$in capital $0(80,000)$

Retained earnings, $12/31/24(1,365,000)(765,000)$

Total liabilities and equities $ $(2,712,000)$ $ $(1,980,000)$

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 $$120,000$ book value $($cost of $$260,000)$ to Bellstar for $$220,000$ instead of land, as the problem reports? Assume that the building had a $10-$year remaining life at the date of transfer