The individual financial statements for Compe December 31, 2018, follow. Gibson acquired 60 per 101 exchange for various considerations betaling 5570,000. At the internally a customer list that was not recorded on the noncontrolling interest w 380.000 and Kellerbook 250 000 Kahve a 100,000 s $100,000. This intangible asset is being amortized over 20 years Shabanuary 1, 2017, Gibron sold a building with a book value of $60,000 (and a hirdetical cont of S140,000) to Keller for 100.000. Kellemes hablanik balding at the end of the current year. The building had a 10-year remaining life at the date of transfer. Keller regularly transfers inventory to Gibson. In 2017. it shipped inventory costing 100,000 to Gibson at a price of $150,000. During 2018, intra entity sales totaled $200,000, although the original cost to Keller was only $140,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. The 2018 financial statements are as follows: Gibson Company Keller Company Sales $ (800,000) $(500,000) Cost of goods sold 500.000 300.000 Operating expenses 60.000 Equity in earnings of Keller (83.800) Net income $ (283,800 $ (140.000) Retained earnings, 1/1/18 $(1.067.000) $ (620.000) Net income (above) (283,800) (140.000) Dividends declared 115.000 60.000 Retained earnings, 12/31/18 $(1.235,800) $ (700,000) Cash $ 177,000 90,000 Accounts receivable 356,000 410,000 Inventory 440,000 320.000 Investment in Keller 680.800 -0- Land 180,000 390,000 Buildings and equipment (net) 492,000 300,000 Total assets $ 2,325,800 $ 1,510,000 Liabilities $ (480,000) $ (400,000) (320,000) (610,000 Common stock Additional paid-in capital -0- (90,000) (1,235,800) (700,000) Retained earnings, 12/31/18 Total liabilities and equities $(2,325,800 $(1,510,000) Prepare Gibson's acquisition-date fair-value allocation schedule for its investment in b. The parent reports Equity in earnings of Keller of $83,800 for 2018. Show how this calculated. c. Calculate the amount of net income to be allocated to the noncontrolling int d. Prepare all the consolidation entries necessary at December 31, 2018. e. On the template provided on the next page, prepare a worksheet for Gibson and I a. year ending December 31, 2018. The individual financial statements for Compe December 31, 2018, follow. Gibson acquired 60 per 101 exchange for various considerations betaling 5570,000. At the internally a customer list that was not recorded on the noncontrolling interest w 380.000 and Kellerbook 250 000 Kahve a 100,000 s $100,000. This intangible asset is being amortized over 20 years Shabanuary 1, 2017, Gibron sold a building with a book value of $60,000 (and a hirdetical cont of S140,000) to Keller for 100.000. Kellemes hablanik balding at the end of the current year. The building had a 10-year remaining life at the date of transfer. Keller regularly transfers inventory to Gibson. In 2017. it shipped inventory costing 100,000 to Gibson at a price of $150,000. During 2018, intra entity sales totaled $200,000, although the original cost to Keller was only $140,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. The 2018 financial statements are as follows: Gibson Company Keller Company Sales $ (800,000) $(500,000) Cost of goods sold 500.000 300.000 Operating expenses 60.000 Equity in earnings of Keller (83.800) Net income $ (283,800 $ (140.000) Retained earnings, 1/1/18 $(1.067.000) $ (620.000) Net income (above) (283,800) (140.000) Dividends declared 115.000 60.000 Retained earnings, 12/31/18 $(1.235,800) $ (700,000) Cash $ 177,000 90,000 Accounts receivable 356,000 410,000 Inventory 440,000 320.000 Investment in Keller 680.800 -0- Land 180,000 390,000 Buildings and equipment (net) 492,000 300,000 Total assets $ 2,325,800 $ 1,510,000 Liabilities $ (480,000) $ (400,000) (320,000) (610,000 Common stock Additional paid-in capital -0- (90,000) (1,235,800) (700,000) Retained earnings, 12/31/18 Total liabilities and equities $(2,325,800 $(1,510,000) Prepare Gibson's acquisition-date fair-value allocation schedule for its investment in b. The parent reports Equity in earnings of Keller of $83,800 for 2018. Show how this calculated. c. Calculate the amount of net income to be allocated to the noncontrolling int d. Prepare all the consolidation entries necessary at December 31, 2018. e. On the template provided on the next page, prepare a worksheet for Gibson and I a. year ending December 31, 2018
