The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2020, in exchange for various considerations totaling $600,000. At the acquisition date, the fair value of the noncontrolling interest was $400.000 and Keller's book value was $800,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $200,000. This intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its investment in Keller. Gibson sold Keller land with a book value of $50.000 on January 2, 2020, for $110.000. Keller still holds this land at the end of the current year Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $175.000 to Gibson at a price of $250.000. During 2021, intra-entity shipments totaled $300.000. although the original cost to Keller was only $195,000. 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 $55.000 at the end of 2021 Sales Cost of goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equities Gibson Company Keller Company $ (980,000) $ (680,000) 600,00 489, 280,000 75,000 (75, 800) 3 $ (175,00) $ (125, eee) $ (1,216,800) $ S (670,880) (175, eee) (125,00) 120,000 75, eee $(1,271, eee) $ (720,000) $ 179,690 $ 60,000 376,00 510,000 499,000 420, eae 864,000 210,000 499,000 506,000 480, ee $ 2,625,800 $ 1,880, eee $ (664,890) $ (640, eee) (690,00) (420,890) (180,000) (1,271, 800) (720,000) $ (2,625, eee) $(1,880, 800) (Note: Parentheses indicate a credit balance.) a. Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller. b. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $110.000 book value (cost of $240.000) to Keller for $200,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Complete this question by entering your answers in the tabs below. Required A Required B Accounts GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Gibson Keller Debit Credit (900,000) $ (600,000) 600,000 400,000 200,000 75,000 (75,000) 0 (175,000) $ (125,000) Noncontrolling Consolidated Interest Totals $ $ Sales Cost of goods sold Operating expenses Equity in earnings of Keller Separate company net income Consolidated net income To noncontrolling interest To Gibson Company Retained earnings. 1/1/21Gibson Retained earnings, 1/1/21-Keller Net income Dividends declared Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Customer list Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 Total liabilities and equity $ (1.216,000) (670,000) (175,000) (125,000) 120,000 75,000 $ (1.271,000) (720,000) 179,000 $ 60,000 376,000 510,000 490,000 420,000 884,000 210,000 490,000 506,000 400,000 $ 2,625,000 $1,880,000 (884,000) $ (640,000) (690,000) (420,000) (100,000) (1.271,000) (720,000) $ (2.625.000) $ (1.880,000) $ 0 $ The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2020, in exchange for various considerations totaling $600,000. At the acquisition date, the fair value of the noncontrolling interest was $400.000 and Keller's book value was $800,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $200,000. This intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its investment in Keller. Gibson sold Keller land with a book value of $50.000 on January 2, 2020, for $110.000. Keller still holds this land at the end of the current year Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $175.000 to Gibson at a price of $250.000. During 2021, intra-entity shipments totaled $300.000. although the original cost to Keller was only $195,000. 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 $55.000 at the end of 2021 Sales Cost of goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equities Gibson Company Keller Company $ (980,000) $ (680,000) 600,00 489, 280,000 75,000 (75, 800) 3 $ (175,00) $ (125, eee) $ (1,216,800) $ S (670,880) (175, eee) (125,00) 120,000 75, eee $(1,271, eee) $ (720,000) $ 179,690 $ 60,000 376,00 510,000 499,000 420, eae 864,000 210,000 499,000 506,000 480, ee $ 2,625,800 $ 1,880, eee $ (664,890) $ (640, eee) (690,00) (420,890) (180,000) (1,271, 800) (720,000) $ (2,625, eee) $(1,880, 800) (Note: Parentheses indicate a credit balance.) a. Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller. b. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $110.000 book value (cost of $240.000) to Keller for $200,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Complete this question by entering your answers in the tabs below. Required A Required B Accounts GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Gibson Keller Debit Credit (900,000) $ (600,000) 600,000 400,000 200,000 75,000 (75,000) 0 (175,000) $ (125,000) Noncontrolling Consolidated Interest Totals $ $ Sales Cost of goods sold Operating expenses Equity in earnings of Keller Separate company net income Consolidated net income To noncontrolling interest To Gibson Company Retained earnings. 1/1/21Gibson Retained earnings, 1/1/21-Keller Net income Dividends declared Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Customer list Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 Total liabilities and equity $ (1.216,000) (670,000) (175,000) (125,000) 120,000 75,000 $ (1.271,000) (720,000) 179,000 $ 60,000 376,000 510,000 490,000 420,000 884,000 210,000 490,000 506,000 400,000 $ 2,625,000 $1,880,000 (884,000) $ (640,000) (690,000) (420,000) (100,000) (1.271,000) (720,000) $ (2.625.000) $ (1.880,000) $ 0 $