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 $$510,000.$ At the acquisition date, the fair value of the noncontrolling interest was $$340,000$ and Bellstar$$s book value was $$670,000.$ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition$-$date fair value of $$180,000.$ 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 $$85,000$ on January $2,2023,$ for $$170,000.$ Bellstar still holds this land at the end of the current year.

Bellstar regularly transfers inventory to Abbey. In $2023,$ it shipped inventory costing $$149,500$ to Abbey at a price of $$230,000.$ During $2024,$ intra$-$entity shipments totaled $$280,000,$ although the original cost to Bellstar was only $$168,000.$ 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 $ $(880,000)$ $ $(580,000)$

Cost of goods sold $580,000380,000$

Operating expenses $180,00065,000$

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

Net income $ $(201,000)$ $ $(135,000)$

Retained earnings, $1/1/24$ $ $(1,196,000)$ $ $(660,000)$

Net income $($above$)(201,000)(135,000)$

Dividends declared $110,00065,000$

Retained earnings, $12/31/24$ $ $(1,287,000)$ $ $(730,000)$

Cash $ $177,000$ $ $90,000$

Accounts receivable $372,000490,000$

Inventory $470,000400,000$

Investment in Bellstar $834,0000$

Land $190,000470,000$

Buildings and equipment $($net$)504,000380,000$

Total assets $ $2,547,000$ $ $1,830,000$

Liabilities $ $(590,000)$ $ $(620,000)$

Common stock $(670,000)(400,000)$

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

Retained earnings, $12/31/24(1,287,000)(730,000)$

Total liabilities and equities $ $(2,547,000)$ $ $(1,830,000)$

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 $$100,000$ book value $($cost of $$220,000)$ to Bellstar for $$180,000$ instead of land, as the problem reports? Assume that the building had a $10-$year remaining life at the date of transfer.