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 $780,000. At the acquisition date, the fair value of the noncontrolling interest was $520,000 and Kellers book value was $1,040,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $260,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $80,000 on January 2, 2017, for $170,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $217,000 to Gibson at a price of $310,000. During 2018, intra-entity shipments totaled $360,000, although the original cost to Keller was only $234,000. 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 2018.

	Gibson Company				Keller Company
Sales	$	(960,000	)		$	(660,000	)
Cost of goods sold		660,000				460,000
Operating expenses		150,000				35,000
Equity in earnings of Keller		(99,000	)			0
Net income	$	(249,000	)		$	(165,000	)
Retained earnings, 1/1/18	$	(1,276,000	)		$	(700,000	)
Net income (above)		(249,000	)			(165,000	)
Dividends declared		150,000				50,000
Retained earnings, 12/31/18	$	(1,375,000	)		$	(815,000	)
Cash	$	185,000			$	70,000
Accounts receivable		388,000				570,000
Inventory		550,000				480,000
Investment in Keller		981,000				0
Land		130,000				550,000
Buildings and equipment (net)		512,000				460,000
Total assets	$	2,746,000			$	2,130,000
Liabilities	$	(621,000	)		$	(755,000	)
Common stock		(750,000	)			(480,000	)
Additional paid-in capital		0				(80,000	)
Retained earnings, 12/31/18		(1,375,000	)			(815,000	)
Total liabilities and equities	$	(2,746,000	)		$	(2,130,000	)

(Note: Parentheses indicate a credit balance.)

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

How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $140,000 book value (cost of $300,000) to Keller for $260,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.

Required Required B Prepare a worksheet to consolidate the separate 2018 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. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) GIBSON AND Consolidation Worksheet For the Year Ending December 31, 2018 Consolidation Entries Gibson 5 (0,000)880,000) 480,000 35,000 Cost of goods sold 880,000 150,000 (39,000) Equity in earnings of Keller Separate company Consolidated net income net income S (249,000) (185,000) To noncontrolling interest To Gibson Company 1/1-Gibson (1,278,000) (700,000) (249,000(185.000) Net income Dividends declared 50,000 5 (1,375,000) (815,000) 5 185,000 70,000 570,000 480,000 150,000 earnings, 12/31 Accounts receivable nventory Investment in Keller 388,000 550,000 981,000 130,000 512,000 550,000 480,000 Buildings and equipment (net) Customer list Total assets 5 2,748,000 2,130,000 5 (821,000)(755,000) Common stock 750,000(480,000 Additional paid-in capital (80,000) (1,375,000)815,000) earnings, 12/31 NCI in Keller, 1/1 NCI in Keller, 12/31 Total liabilities and equity 5 (2,748,000) (2,130,000) 0S