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 $510,000. At the acquisition date, the fair value of the noncontrolling interest was $340,000 and Kellers book value was $670,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $180,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $85,000 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 $149,500 to Gibson at a price of $230,000. During 2018, intra-entity shipments totaled $280,000, although the original cost to Keller was only $168,000. 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 $45,000 at the end of 2018.

	Gibson Company				Keller Company
Sales	$	(880,000	)		$	(580,000	)
Cost of goods sold		580,000				380,000
Operating expenses		180,000				65,000
Equity in earnings of Keller		(81,000	)			0
Net income	$	(201,000	)		$	(135,000	)
Retained earnings, 1/1/18	$	(1,196,000	)		$	(660,000	)
Net income (above)		(201,000	)			(135,000	)
Dividends declared		110,000				65,000
Retained earnings, 12/31/18	$	(1,287,000	)		$	(730,000	)
Cash	$	177,000			$	90,000
Accounts receivable		372,000				490,000
Inventory		470,000				400,000
Investment in Keller		834,000				0
Land		190,000				470,000
Buildings and equipment (net)		504,000				380,000
Total assets	$	2,547,000			$	1,830,000
Liabilities	$	(590,000	)		$	(620,000	)
Common stock		(670,000	)			(400,000	)
Additional paid-in capital		0				(80,000	)
Retained earnings, 12/31/18		(1,287,000	)			(730,000	)
Total liabilities and equities	$	(2,547,000	)		$	(1,830,000	)

(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 $100,000 book value (cost of $220,000) to Keller for $180,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.