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 $750,000. At the acquisition date, the fair value of the noncontrolling interest was $500,000 and Bellstars book value was $1,000,000. Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition-date fair value of $250,000. 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 $75,000 on January 2, 2023, for $160,000. Bellstar still holds this land at the end of the current year.

Bellstar regularly transfers inventory to Abbey. In 2023, it shipped inventory costing $180,000 to Abbey at a price of $300,000. During 2024, intra-entity shipments totaled $350,000, although the original cost to Bellstar was only $245,000. 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 $35,000 at the end of 2024.

Items	Abbey Company	Bellstar Company
Sales	$ (950,000)	$ (650,000)
Cost of goods sold	650,000	450,000
Operating expenses	140,000	30,000
Equity in earnings of Bellstar	(102,000)	0
Net income	$ (262,000)	$ (170,000)
Retained earnings, 1/1/24	$ (1,266,000)	$ (695,000)
Net income (above)	(262,000)	(170,000)
Dividends declared	145,000	45,000
Retained earnings, 12/31/24	$ (1,383,000)	$ (820,000)
Cash	$ 184,000	$ 60,000
Accounts receivable	386,000	560,000
Inventory	540,000	470,000
Investment in Bellstar	966,000	0
Land	120,000	540,000
Buildings and equipment (net)	511,000	450,000
Total assets	$ 2,707,000	$ 2,080,000
Liabilities	$ (584,000)	$ (720,000)
Common stock	(740,000)	(470,000)
Additional paid-in capital	0	(70,000)
Retained earnings, 12/31/24	(1,383,000)	(820,000)
Total liabilities and equities	$ (2,707,000)	$ (2,080,000)

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 $135,000 book value (cost of $290,000) to Bellstar for $250,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.