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 $870,000. At the acquisition date, the fair value of the noncontrolling interest was $580,000 and Keller's book value was $1160,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $290,000. 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 $120,000. Kelter still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $238,000 to Gibson at a price of $340,000. During 2021, intra-entity shipments totaled $390,000, although the original cost to Keller was only $253,500. 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 Gibson Keller Company Company Sales $ 990,000) $ (690,000) Cost of goods sold 690,000 490,000 Operating expenses 180,000 50,000 Equity in earnings of Keller Net income $(210,000) $ 150,000) Retained earnings. 1/1/21 5(1,306,000) 1715, 000) Net incone (above) (210,000) (150,000) Dividends declared 65.000 Retained earnings, 12/31/21 501,396,000) $(800,000) Cash 188,000 100,000 Accounts receivable 394,000 Inventory 550,000 510,000 Investment in Keller 1.002.000 Land 580.000 $15,000 490,000 Buildings and equipment (net) $ 2,839,000 $ 2,280,000 (90, eee) $ 120,00 $ 5 see, 000 160,000 Total assets Keller Company $ (690,000) 490,000 50,000 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 $(990,000) 690,000 180,000 (90,eee) $(210,000) $(1,306,680) (210,000) 120,000 ${1,396,000) $ 188,888 394,000 580,000 1,002,800 160,000 515,000 $ 2,839,000 $ (663,880) (780,000) (1,396,00) $12,839, 680) $ 158,000) $ 1715, 000) (150,000) 65,000 $ (800,000) $ 100.000 600,000 510,000 580,000 490,000 $ 2,280,000 $ (900,880) (510,000) (70,000) (800, 200) $(2,280,000) (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 $155,000 book value (cost of $330,000) to Keller for $290,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer. Required A Required B Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller. (Do not round Intermediate calculations. For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Show less Accounts GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Gibson Keller Debit Credit 5 (000,000) $100,000) 690,000 480,000 180 000 50,000 (90,000) 0 $(210.000) 3 (150.000) Noncontrolling Consolidated Interest Total Sales Cost of goods sold Operating pen Equity in coming of Keller Separate company net income Consolidated nat income To non controlling interest To Gibson Company Rendering, 121. Rendering 121-Kler Nutcome Dividende declared Fig. 12/31/21 Cash Accueil wy Investment in a Land Buildings and winter Customer 5 1.300.000 (715.000) (210,000) (150.000) 120.000 5.000 (1,326,000) $ (800,000) 5 158.000 5 100,000 304000 000.000 500 000 510.000 1.002.000 180.000 50.000 $15.000 100.000 Lai Commons M 32,630.000 2.200,000 $662,000) 100.000) (70.000 510.000) 70 000 Required A Required B How would the consolidation entries in requirement () have differed if Gibson had sold a building on January 2, 2020, with a $155,000 book value (cost of $330,000) to Keller for $290,000 Instead of land, as the problem reports? Assume that the bullding 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 joumal entry required in the first account field.) Show less view transaction list Consolidation Worksheet Entries 1 2 Prepare Entry *TA to defer the Intra-entity gain as of the beginning of the year. Note: Enter debits before credits Transaction Accounts Dabii Credit Record entry Clear entry view consolidation entries Required A