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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

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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 Keller on January 1,2020 , in exchange for various considerations totaling $750,000. At the acquisition date, the fair value of the noncontrolling interest was $500,000 and Keller's book value was $1,000,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $250,000. 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 $75,000 on January 2,2020 , for $160,000. Keller still holds this land at the end of the current year. Keller regularly transfers inventory to Gibson. In 2020 , it shipped inventory costing $180,000 to Gibson at a price of $300,000. During 2021 , intra-entity shipments totaled $350,000, although the original cost to Keller was only $245,000. 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 $35,000 at the end of 2021 . \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline ACE & & GIDE on & & & & & & Interest & Totals \\ \hline Sales & $ & (950,000) & $ & (650,000) & $ & 350,000 & & & $(1,250,000) \\ \hline Cost of goods sold & & 650,000 & t & 450,000 & & & & & \\ \hline Operating expenses & & 140,000 & & 30,000 & & & & & \\ \hline Equity in eamings of Keller & 1 & (102,000) & & 0 & & 102,000 & & I & \\ \hline Separate company net income & $ & (262,000) & $ & (170,000) & & & & & \\ \hline Consolidated net income & 1 & & & 1711 & & & & & \\ \hline To noncontrolling interest & & & & & & & & & \\ \hline To Gibson Company & 17 & 1113 & te & & & & & & E \\ \hline Retained earnings, 1/1/21 - Gibson & $ & (1,266,000) & & & & & & T & \\ \hline Retained oarnings, 1/1/21 - Keller & 4 & & & (695,000) & & & & & \\ \hline Net income & & (262,000) & 1 & (170,000) & & & & & \\ \hline Dividends declared & 71 & 145,000 & & 45,000 & & & & & \\ \hline Retained earnings, 12/31/21 & s & (1,383,000) & $ & (820,000) & & & & & \\ \hline Cash & $ & 184,000 & $ & 60,000 & & & & & \\ \hline Accounts receivable & te & 386,000 & & 560,000 & & & & & \\ \hline Inventory & & 540,000 & & 470,000 & & & & & \\ \hline Investment in Keller & & 966,000 & & 7 & & & & & \\ \hline Land & & 120,000 & & 540,000 & & & & & \\ \hline Buildings and equipment (net). & & 511,000 & & 450,000 & & & & & \\ \hline Customer list & 1 & & t & & & & & & \\ \hline Total assets & 5 & 2,707,000 & $ & 2,080,000 & & & & & \\ \hline Liabilities & $ & (584,000) & $ & (720,000) & & & & & E \\ \hline Common stock & & (740,000) & & (470,000) & & & & & \\ \hline Additional paid-in capital & & & & (70,000) & & & & & \\ \hline Retained earnings, 12/31/21 & & (1,383,000) & & (820,000) & & & & & \\ \hline Noncontrolling interest 1/1/21 & & & & & & & & & \\ \hline Noncontrolling interest 12/31/21 & & & & & & & & 5 & \\ \hline Total liabilities and equity & s & (2,707,000) & s & (2,080,000) & $ & 452,000 & $ & 0 & 7 \\ \hline \end{tabular} How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2,2020 , with $135,000 book value (cost of $290,000 ) to Keller for $250,000 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 joumal entry required" In the first account field.) end of 2021 . (Note: Parentheses indicate a credit balance) a. Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller b. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $135,000 book value (cost of $290,000 ) to Keller for $250,000 instead of land, as the problem reports? Assume that the building had a 10-year temaining life ot the date of transfer

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