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 $360,000. At the acquisition date, the fair value of the noncontrolling interest was $240,000 and Keller's book value was $470,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $130,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $60,000 on January 2, 2017, for $120,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $108,000 to Gibson at a price of $180,000. During 2018, intra-entity shipments totaled $230,000, although the original cost to Keller was only $161,000. 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 $50,000 at the end of 2018.

Gibson CompanyKeller CompanySales$(830,000)$(530,000)Cost of goods sold530,000330,000Operating expenses130,00040,000Equity in earnings of Keller(96,000)0Net income$(266,000)$(160,000)Retained earnings, 1/1/18$(1,146,000)$(635,000)Net income (above)(266,000)(160,000)Dividends declared130,00040,000Retained earnings, 12/31/18$(1,282,000)$(755,000)Cash$172,000$90,000Accounts receivable362,000440,000Inventory420,000350,000Investment in Keller783,0000Land140,000420,000Buildings and equipment (net)499,000330,000Total assets$2,376,000$1,630,000Liabilities$(474,000)$(455,000)Common stock(620,000)(350,000)Additional paid-in capital0(70,000)Retained earnings, 12/31/18(1,282,000)(755,000)Total liabilities and equities$(2,376,000)$(1,630,000)

(Note: Parentheses indicate a credit balance.)

1. How suppose to look 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 $75,000 book value (cost of $170,000) to Keller for $130,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.