The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow Gibson acquired a 60 percent interest in Keller on January 1, 2020, in exchange for various considerations totaling $870,000 At the acquisition date, the fair value of the noncontrolling interest was $580,000 and Kellers book value was $1,160,000 Keller had developed internally a customer list that was not recorded on its books but had an acquisition date fair value of $290,000 This intangible asset is being amortized over 20 years Gibson uses the partial equity method to account for its investment in Keller Gibson sold Keller land with a book value of $50,000 on January 2, 2020, for $120,000 Keller still holds this land at the end of the current year Keller regularly transfers inventory to Gibson In 2020, it shipped inventory costing $238,000 to Gibson at a price of $340,000 During 2021, intra entity shipments totaled $390,000, although the original cost to Keller was only $253,500 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 $55,000 at the end of 2021 Gibson Company Keller Company Sales $ (990,000 ) $ (690,000 ) Cost of goods sold 690,000 490,000 Operating expenses 180,000 50,000 Equity in earnings of Keller (90,000 ) 0 Net income $ (210,000 ) $ (150,000 ) Retained earnings, 1 1 21 $ (1,306,000 ) $ (715,000 ) Net income (above) (210,000 ) (150,000 ) Dividends declared 120,000 65,000 Retained earnings, 12 31 21 $ (1,396,000 ) $ (800,000 ) Cash $ 188,000 $ 100,000 Accounts receivable 394,000 600,000 Inventory 580,000 510,000 Investment in Keller 1,002,000 0 Land 160,000 580,000 Buildings and equipment (net) 515,000 490,000 Total assets $ 2,839,000 $ 2,280,000 Liabilities $ (663,000 ) $ (900,000 ) Common stock (780,000 ) (510,000 ) Additional paid in capital 0 (70,000 ) Retained earnings, 12 31 21 (1,396,000 ) (800,000 ) Total liabilities and equities $ (2,839,000 ) $ (2,280,000 ) (Note Parentheses indicate a credit balance ) Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $155,000 book value (cost of $330,000) to Keller for $290,000 instead of land, as the problem reports Assume that the building had a 10 year remaining life at the date of transfer Prepare these 2 journals Prepare Entry TA to defer the intra entity gain as of the beginning of the year Prepare Entry ED to remove the excess depreciation for the current year created by the transfer price Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller (Do not round intermediate cald where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit c Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet Input all amou GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Accounts Gibson Keller Debit Credit Noncontrolling Consolidated Interest Totals Sales $ Cost of goods sold Operating expenses Equity in earnings of Keller Separate company net income Consolidated net income To noncontrolling interest To Gibson Company (990,000) $ 690,000 180,000 (90,000) (210,000) $ (690,000) 490,000 50,000 0 (150,000) $ Consolidated net income To noncontrolling interest To Gibson Company Retained earnings, 1 1 21Gibson Retained earnings, 1 1 21Keller $ (1,306,000) Net income Dividends declared Retained earnings, 12 31 21 Cash (715,000) (150,000) 65,000 (800,000) 100,000 600,000 510,000 (210,000) 120,000 $ (1,396,000 $ $ 188,000 $ 394,000 580,000 1,002,000 160,000 515,000 Accounts receivable Inventory Investment in Keller Land 580,000 490,000 Buildings and equipment (net) Customer list Total assets $ 2,839,000 $ 2,280,000 Liabilities $ $ (663,000) (780,000) Common stock (900,000) (510,000) (70,000) (800,000) (1,396,000) Additional paid in capital Retained earnings, 12 31 21 Noncontrolling interest 1 1 21 Noncontrolling interest 12 31 21 Total liabilities and equity $ (2,839,000) $ (2,280,000)

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The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent interest in

The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2020, in exchange for various considerations totaling $870,000. At the acquisition date, the fair value of the noncontrolling interest was $580,000 and Kellers book value was $1,160,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $290,000. This intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its investment in Keller.

Gibson sold Keller land with a book value of $50,000 on January 2, 2020, for $120,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $238,000 to Gibson at a price of $340,000. During 2021, intra-entity shipments totaled $390,000, although the original cost to Keller was only $253,500. 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 $55,000 at the end of 2021.

	Gibson Company			Keller Company
Sales	$	(990,000	)	$	(690,000	)
Cost of goods sold		690,000			490,000
Operating expenses		180,000			50,000
Equity in earnings of Keller		(90,000	)		0
Net income	$	(210,000	)	$	(150,000	)
Retained earnings, 1/1/21	$	(1,306,000	)	$	(715,000	)
Net income (above)		(210,000	)		(150,000	)
Dividends declared		120,000			65,000
Retained earnings, 12/31/21	$	(1,396,000	)	$	(800,000	)
Cash	$	188,000		$	100,000
Accounts receivable		394,000			600,000
Inventory		580,000			510,000
Investment in Keller		1,002,000			0
Land		160,000			580,000
Buildings and equipment (net)		515,000			490,000
Total assets	$	2,839,000		$	2,280,000
Liabilities	$	(663,000	)	$	(900,000	)
Common stock		(780,000	)		(510,000	)
Additional paid-in capital		0			(70,000	)
Retained earnings, 12/31/21		(1,396,000	)		(800,000	)
Total liabilities and equities	$	(2,839,000	)	$	(2,280,000	)

(Note: Parentheses indicate a credit balance.)

Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller.
How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $155,000 book value (cost of $330,000) to Keller for $290,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.Prepare these 2 journals:
Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year.
Prepare Entry ED to remove the excess depreciation for the current year created by the transfer price.

Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller. (Do not round intermediate cald where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit c Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amou GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Accounts Gibson Keller Debit Credit Noncontrolling Consolidated Interest Totals Sales $ Cost of goods sold Operating expenses Equity in earnings of Keller Separate company net income Consolidated net income To noncontrolling interest To Gibson Company (990,000) $ 690,000 180,000 (90,000) (210,000) $ (690,000) 490,000 50,000 0 (150,000) $ Consolidated net income To noncontrolling interest To Gibson Company Retained earnings, 1/1/21Gibson Retained earnings, 1/1/21Keller $ (1,306,000) Net income Dividends declared Retained earnings, 12/31/21 Cash (715,000) (150,000) 65,000 (800,000) 100,000 600,000 510,000 (210,000) 120,000 $ (1,396,000 $ $ 188,000 $ 394,000 580,000 1,002,000 160,000 515,000 Accounts receivable Inventory Investment in Keller Land 580,000 490,000 Buildings and equipment (net) Customer list Total assets $ 2,839,000 $ 2,280,000 Liabilities $ $ (663,000) (780,000) Common stock (900,000) (510,000) (70,000) (800,000) (1,396,000) Additional paid-in capital Retained earnings, 12/31/21 Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 Total liabilities and equity $ (2,839,000) $ (2,280,000)