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 $810,000. At the acquisition date, the fair value of the noncontrolling interest was $540,000 and Keller's book value was $1,080,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $270,000. 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 $85,000 on January 2, 2020, for $180,000. Keller still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $208,000 to Gibson at a price of $320,000. During 2021, intra-entity shipments totaled $370,000, although the original cost to Keller was only $222,000. 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 $45,000 at the end of 2021. Gibson Company Keller Company Sales Cost of goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 1/1/21 $ (970,000) $ (670,000) 670,000 160,000 (96,000) 470,000 40,000 $ (236,000) $ (160,000) $ (1,286,000) (236,000) $ (705,000) (160,000) 55,000 Net income (above) Dividends declared 110,000 Retained earnings, 12/31/21 $ (1,412,000) $ (810,000) Cash $ 186,000 $ 80,000 Inventory Accounts receivable 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 390,000 580,000 560,000 490,000 996,000 e 140,000 513,000 560,000 470,000 $ 2,785,000 $ 2,180,000 $ (613,000) $ (790,000) (760,000) 0 (1,412,000) (490,000) (90,000) (810,000) $ (2,785,000) $ (2,180,000) (Note: Parentheses indicate a credit balance.)