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 $570,000. At the acquisition date, the fair value of the noncontrolling interest was $380,000 and Kellers book value was $850,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $100,000. 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 $60,000 on January 2, 2020, for $100,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $100,000 to Gibson at a price of $150,000. During 2021, intra-entity shipments 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. Gibson owes Keller $40,000 at the end of 2021.

	Gibson Company	Keller Company
Sales	$(800,000)	$(500,000)
Cost of goods sold	500,000	300,000
Operating expenses	100,000	60,000
Equity in earnings of Keller	(84,000)	0
Net Income	$(284,000)	$(140,000)
Retained earnings, 1/1/21	$(1,116,000)	$(620,000)
Net income	(284,000)	(140,000)
Dividends declared	115,000	60,000
Retained earnings, 12/31/21	$(1,285,000)	$(700,000)
Cash	177,000	90,000
Accounts receivable	356,000	410,000
Inventory	440,000	320,000
Investment in Keller	726,000	0
Land	180,000	390,000
Buildings and equipment	496,000	300,000
Total assets	$2,375,000	$1,510,000
Liabilities	$(480,000)	$(400,000)
Common stock	(610,000)	(320,000)
Additional paid-in capital		(90,000)
Retained earnings, 12/31/21	(1,285,000)	(700,000)
Total liabilities and equities	$(2,375,000)	$(1,510,000)

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 $60,000 book value (cost of $140,000) to Keller for $100,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.