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 $990,000. At the acquisition date, the fair value of the noncontrolling interest was $660,000 and Kellers book value was $1,320,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $330,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $70,000 on January 2, 2017, for $160,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $247,000 to Gibson at a price of $380,000. During 2018, intra-entity shipments totaled $430,000, although the original cost to Keller was only $258,000. 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 $30,000 at the end of 2018.

Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller.

Sales Cost of goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and equities Gibson Company $(1,030,000) 730,000 110,000 (78,000) $ (268,000) $(1,346,000) (268,000) 140,000 $(1,474,000) $ 192,000 402,000 620,000 1,065,000 200,000 519,000 $ 2,998,000 $ (704,000) (820,000) 0 (1,474,000) $(2,998,000) Keller Company $ (730,000) 530,000 70,000 0 $ (130,000) $ (735,000) (130,000) 40,000 $ (825,000) $ 90,000 640,000 550,000 0 620,000 530,000 $ 2,430,000 $ (985,000) (550,000) (70,000) (825,000) $(2,430,000) Accounts Gibson Keller Debit Credit Noncontrolling Interest Sales S (730,000) IS 430,000 S (1.030,000) 730.000 110.000 (78,000) S (268,000) Consolidated Totals S (1.330,000) 837.800 196,500 530,000 70,000 0 16,500 78,000 S (130,000) Cost of goods sold Operating expenses Equity in earnings of Keller Separate company net income Consolidated net income To noncontrolling interest To Gibson Company Retained earnings, 1/1Gibson Retained earnings, 1/1-Keller Net income Dividends declared (42,280) S (295,700) 42.280 S (253,420) s (1.230,140) S (1,346,000) (735,000) (130,000) 40,000 (825,000) s (1,230,140) S (268,000) 140.000 Is (1.474.000) S 192,000 402,000 620,000 1,065,000 200.000 Retained earnings, 12/31 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Customer list 90.000 640,000 550.000 620.000 530,000 519,000 IS 0 S 2,998.000 S (704,000) (820,000) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31 NCI in Keller, 1/1 NCI in Keller, 12/31 Total liabilities and equity S 2.430,000 S (985,000) (550,000) (70,000) (825.000) (1.474,000) IS S (2.998,000) *2.430.000 S 524,500 IS 0 IS 0