The individual financial statements for Bergen Company and Hudson Company for the year ending December 31, 2018, follow. Bergen acquired a 60 percent interest in Hudson on January 1, 2017, in exchange for various considerations totaling $690,000. At the acquisition date, the fair value of the noncontrolling interest was $460,000 and Hudsons book value was $920,000. Hudson had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $230,000. This intangible asset is being amortized over 20 years.

Bergen sold Hudson land with a book value of $65,000 on January 2, 2017, for $140,000. Hudson still holds this land at the end of the current year.

Hudson regularly transfers inventory to Bergen. In 2017, it shipped inventory costing $196,000 to Bergen at a price of $280,000. During 2018, intra-entity shipments totaled $330,000, although the original cost to Hudson was only $214,500. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Bergen owes Hudson $70,000 at the end of 2018.

	Bergen Company				Hudson Company
		12/31/18				12/31/18
Sales	$	-930,000			$	-630,000
Cost of goods sold		630,000				430,000
Operating expenses		120,000				90,000
Equity in earnings of Hudson		-66,000				0
Net income	$	-246,000			$	-110,000
Retained earnings, 1/1/18	$	-1,246,000			$	-685,000
Net income (above)		-246,000				-110,000
Dividends declared		135,000				35,000
Retained earnings, 12/31/18	$	-1,357,000			$	-760,000
Cash	$	182,000			$	90,000
Accounts receivable		382,000				540,000
Inventory		520,000				450,000
Investment in Hudson		918,000				0
Land		240,000				520,000
Buildings and equipment (net)		509,000				430,000
Total assets	$	2,751,000			$	2,030,000
Liabilities	$	-674,000			$	-730,000
Common stock		-720,000				-450,000
Additional paid-in capital		0				-90,000
Retained earnings, 12/31/18		-1,357,000				-760,000
Total liabilities and equities	$	-2,751,000			$	-2,030,000 (Note: Negative number indicate a credit balance.)

a. Prepare a worksheet to consolidate the separate 2018 financial statements for Fairleigh and Dickinson.

b. Prepare US GAAP compliant Balance Sheet and Income Statement as of December 31, 2018, and for the year then ended.

c. How would the consolidation entries in requirement (a) have differed if Bergen had sold a building with a $125,000 book value (cost of $270,000) to Hudson for $230,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Prepare the journal entries, but do not make a new worksheet or FS.