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 $990,000. At the acquisition date, the fair value of the noncontrolling interest was $660,000 and Keller's book value was $1,320,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $330,000. 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 $70,000 on January 2, 2020, for $160,000. Keller still holds this land at the end of the current year. Kellerregularly transfers inventory to Gibson. In 2020, it shipped inventory costing $247,000 to Gibson at a price of $380,000. During 2021, intra-entity shipments totaled $430,000, although the original cost to Keller was only $258,000. 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 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 i 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 $ (1,030,000) 730,000 $ (730,000) (130,000) 530,000 110,000 70,000 (78,000) $ (268,000) $ (130,000) $ (1,346,000) $ (735,000) (268,000) 140,000 40,000 $ (1,474,000) $ (825,000) $ 192,000 $ 90,000 640,000 550,000 402,000 620,000 1,065,000 200,000 519,000 $ 2,998,000 620,000 530,000 $ 2,430,000 $ (704,000) (820,000) $ (985,000) (550,000) e (1,474,000) $ (2,998,000) (70,000) (825,000) $ (2,430,000) (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 $175,000 book value (cost of $370,000) to Keller for $330,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Accounts Gibson Keller Debit Credit Noncontrolling Interest S 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 (1,030,000) 730,000 $ $ (730,000) 430,000 530,000 34,400 110,000 70,000 26,600 430,000 (78,000) 0 78,000 $ (268,000) $ (130,000) Consolidated Totals $ (1,330,000) 837,800 196,500 $ 295,700 (42,280) 42,280 $ (253,420) S Retained earnings, 1/1/21-Gibson 90,000 (1,346,000) $ (1,230,140) ( Retained earnings, 1/1/21-Keller Net income (268,000) Dividends declared 140,000 (735,000) (130,000) 40,000 25,860 26,600 24,000 16,000 S Retained earnings, 12/31/21 (1,474,000) $ (825,000) Cash $ 192,000 $ 90,000 Accounts receivable 402,000 640,000 30,000 Inventory 620,000 550,000 34,400 (253,420) 140,000 $ (1,343,560) 282,000 1,012,000 1,135,600 Investment in Keller Land 1,065,000 24,000 25,860 200,000 620,000 188,100x Buildings and equipment (net) 519,000 530,000 78,000 Customer list Total assets Liabilities Common stock 313,500 90,000 $ 2,998,000 $ 2,430,000 730,000 1,049,000 297,000 $ 4,505,600 O $ (704,000) $ (985,000) 16,500 $ 1,659,000 (820,000) (550,000) 550,000 820,000 10 noncontrolling interest To Gibson Company Retained earnings, 1/1/21-Gibson Retained earnings, 1/1/21-Keller Net income Dividends declared $ (1,346,000) 90,000 (42.280) 42,280 $ (253,420) $ (1,230,140) (735,000) (268,000) (130,000) 25,860 26,600x (253,420) 140,000 40,000 24,000 16,000 140,000 S Retained eamings, 12/31/21 (1.474,000) $ (825,000) $ (1,343,560) Cash S 192,000 S 90,000 $ 282,000 Accounts receivable 402,000 640,000 30,000 1,012,000 Inventory 620,000 550,000 34,400 1,135,600 Investment in Keller 1,065,000 24,000 25,860 Land Buildings and equipment (net) 200,000 519,000 620,000 188,100 730,000 530,000 78,000 1,049,000 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 313,500 90,000x 297,000 $ 2,998,000 $ 2,430,000 $ 4,505,600 0000 $ (704,000) $ (985,000) 16,500 S 1,659,000 (820,000) (550,000) 550,000 820,000 (70,000) 70,000 (1,474,000) (825,000) 531,360 125,400 (1.343,560) ( $ (683,040) (683,040) S $ 1,642,360 $1,600,220 $ (4,505,600) (2,998,000) (2,430,000) Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $175,000 book value (cost of $370,000) to Keller for $330,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) Show less A No Transaction 1 1 Retained earnings Buildings Accumulated depreciation 2 2 Retained earnings Buildings Accumulated depreciation Operating expenses Accounts 000 Debit Credit 139,500 40,000 179,500 139,500 139,500 15,500 15,500