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 $720,000. At the acquisition date, the fair value of the noncontrolling interest was $480,000 and Keller's book value was $960,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $240,000. 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 $150,000. Keller still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $188,500 to Gibson at a price of $290,000. During 2018, intra-entity shipments totaled $340,000, although the original cost to Keller was only $204,000. 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. Gibsor Company $(940,000)(640,000) Keller Company Sales Cost of goods sold Operating expenses Equity in earnings of Keller 640,000 130,000 63,000 440,000 95,000 Net income Retained earnings, 1/1/18 Net income (above) Dividends declared $ (233,000) $(105,000) $ (1,256,000) $ (690,000) (105,000) (233,000) 140,000 40,000 $ (1,349,000) $(755,000) Retained earnings, 12/31/18 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) $ 183,000 384,000 530,000 933,000 250,000 510,000 $ 2,790,000 $ 100,000 550,000 460,000 530,000 440,000 $ 2,080,000 Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 $ (711,000) $(765,000) (460,000) (100,000) (1,349,000)(755,000) $ (2,790,000) (2,080,000) (730,000) Total liabilities and equities Note: Parentheses indicate a credit balance a. Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller. b. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $130,000 book value (cost of $280,000) to Keller for $240,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Gibson Keller Debit Credit Interest Totals S (940,000) S (640,000) 440,000 95,000 Sales Cost of goods sold Operating expenses Equity in earnings of Keller Separate company net income Consolidated net income 640,000 130,000 (63,000) $ (233,000)$(105,000) To noncontrolling interest To Gibson Company Retained earnings, 1/1-Gibson Retained earnings, 1/1-Keller Net income Dividends declared $ (1,256,000) (690,000) (105,000) 40,000 S (1,349,000) S(755,000) (233,000) 140,000 Retained earnings, 12/31 $ 183,000 100,000 550,000 460,000 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Customer list 384,000 530,000 933,000 250,000 510,000 530,000 440,000 Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31 NCI in Keller, 1/1 NCI in Keller, 12/31 $ 2,790,000 $ 2,080,000 $ (711,000)(765,000) (460,000) (100,000) (755,000) (730,000) (1,349,000) Total liabilities and equity $(2,790,000) (2,080,000$ How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $130,000 book value (cost of $280,000) to Keller for $240,000 instead of land, as the problem reports? Assume that the building 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 journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 2 Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year. Note: Enter debits before credits