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 $630,000. At the acquisition date, the fair value of the noncontrolling interest was $420,000 and Bellstars book value was $840,000. Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition-date fair value of $210,000. 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 $55,000 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 $169,000 to Abbey at a price of $260,000. During 2024, intra-entity shipments totaled $310,000, although the original cost to Bellstar was only $186,000. 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 $60,000 at the end of 2024.

Items	Abbey Company	Bellstar Company
Sales	$ (910,000)	$ (610,000)
Cost of goods sold	610,000	410,000
Operating expenses	100,000	80,000
Equity in earnings of Bellstar	(72,000)	0
Net income	$ (272,000)	$ (120,000)
Retained earnings, 1/1/24	$ (1,226,000)	$ (675,000)
Net income (above)	(272,000)	(120,000)
Dividends declared	125,000	80,000
Retained earnings, 12/31/24	$ (1,373,000)	$ (715,000)
Cash	$ 180,000	$ 70,000
Accounts receivable	378,000	520,000
Inventory	500,000	430,000
Investment in Bellstar	855,000	0
Land	220,000	500,000
Buildings and equipment (net)	507,000	410,000
Total assets	$ 2,640,000	$ 1,930,000
Liabilities	$ (567,000)	$ (715,000)
Common stock	(700,000)	(430,000)
Additional paid-in capital	0	(70,000)
Retained earnings, 12/31/24	(1,373,000)	(715,000)
Total liabilities and equities	$ (2,640,000)	$ (1,930,000)

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 $115,000 book value (cost of $250,000) to Bellstar for $210,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.

Required B How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2,2023 , with a $115,000 book value (cost of $250,000 ) to Bellstar for $210,000 instead of land, as the problem reports? Assume that the building had a 10 -year remaining life at the date of transfer. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year. Note: Enter debits before credits. How would the consolidation entries in requirement (a) have differed if Abbey had sold a building on January 2,2023, with a $115, 000 book value (cost of $250,000 ) to Bellstar for $210,000 instead of land, as the problem reports? Assume that the building had a 10 -year remaining life at the date of transfer. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Consolidation Worksheet Entries Prepare Entry ED to remove the excess depreciation for the current year created by the transfer price. Note: Enter debits before credits