The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2017, in exchange for various considerations totaling $720,000. At the acquisition date, the fair value of the noncontrolling interest was $480,000 and Kellers book value was $960,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $240,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $70,000 on January 2, 2017, for $150,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $188,500 to Gibson at a price of $290,000. During 2018, intra-entity shipments totaled $340,000, although the original cost to Keller was only $204,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $30,000 at the end of 2018.

	Gibson Company				Keller Company
Sales	$	(940,000	)		$	(640,000	)
Cost of goods sold		640,000				440,000
Operating expenses		130,000				95,000
Equity in earnings of Keller		(63,000	)			0
Net income	$	(233,000	)		$	(105,000	)
Retained earnings, 1/1/18	$	(1,256,000	)		$	(690,000	)
Net income (above)		(233,000	)			(105,000	)
Dividends declared		140,000				40,000
Retained earnings, 12/31/18	$	(1,349,000	)		$	(755,000	)
Cash	$	183,000			$	100,000
Accounts receivable		384,000				550,000
Inventory		530,000				460,000
Investment in Keller		933,000				0
Land		250,000				530,000
Buildings and equipment (net)		510,000				440,000
Total assets	$	2,790,000			$	2,080,000
Liabilities	$	(711,000	)		$	(765,000	)
Common stock		(730,000	)			(460,000	)
Additional paid-in capital		0				(100,000	)
Retained earnings, 12/31/18		(1,349,000	)			(755,000	)
Total liabilities and equities	$	(2,790,000	)		$	(2,080,000	)

(Note: Parentheses indicate a credit balance.)

1. Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller.

2. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $130,000 book value (cost of $280,000) to Keller for $240,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.