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 $540,000. At the acquisition date, the fair value of the noncontrolling interest was $360,000 and Kellers book value was $710,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $190,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $90,000 on January 2, 2017, for $180,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $144,000 to Gibson at a price of $240,000. During 2018, intra-entity shipments totaled $290,000, although the original cost to Keller was only $203,000. 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 Company				Keller Company
Sales	$	(890,000	)		$	(590,000	)
Cost of goods sold		590,000				390,000
Operating expenses		190,000				70,000
Equity in earnings of Keller		(78,000	)			0
Net income	$	(188,000	)		$	(130,000	)
Retained earnings, 1/1/18	$	(1,206,000	)		$	(665,000	)
Net income (above)		(188,000	)			(130,000	)
Dividends declared		115,000				70,000
Retained earnings, 12/31/18	$	(1,279,000	)		$	(725,000	)
Cash	$	178,000			$	100,000
Accounts receivable		374,000				500,000
Inventory		480,000				410,000
Investment in Keller		849,000				0
Land		200,000				480,000
Buildings and equipment (net)		505,000				390,000
Total assets	$	2,586,000			$	1,880,000
Liabilities	$	(627,000	)		$	(655,000	)
Common stock		(680,000	)			(410,000	)
Additional paid-in capital		0				(90,000	)
Retained earnings, 12/31/18		(1,279,000	)			(725,000	)
Total liabilities and equities	$	(2,586,000	)		$	(1,880,000	)

(Note: Parentheses indicate a credit balance.)

1. Prepare a 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 $105,000 book value (cost of $230,000) to Keller for $190,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.