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. Sales Cost of goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equities Gibson Company Keller Company $ (950,000) $ (650,000) 650,000 450,000 140,000 30,000 (102,000) $ (262,000) $ (170,000) $ (1,266,000) $ (695,000) (262,000) (170,000) 145,000 45,000 $ (1,383,000) $ (820,000) 184,000 $ 60,000 386,000 560,000 540,000 470,000 966,000 120,000 540,000 511,000 450,000 $ 2,707,000 $ 2,080,000 $ (584,000) $ (720,000) (740,000) (470,000) (70,000) (1,383,000) (820,000) $ (2,707,000) $ (2,080,000) (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 remaining life at the date of transfer. For the Year Ending December 31, 2021 Consolidation Entries Accounts Gibson Keller Debit Credit Noncontrolling Consolidated Interest Totals $ (650,000) 450,000 (950,000) $ 650,000 140,000 (102,000) (262,000) $ 30,000 0 $ (170,000) $ (1,266,000) (695,000) (170,000) 45,000 (820,000) 60.000 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 Retained earnings, 1/1/21Gibson Retained earnings, 1/1/21Keller Net income Dividends declared Retained earnings, 12/31/21 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Customer list Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 Total liabilities and equity (262,000) 145,000 $ (1,383,000) $ $ 184,000 $ 386,000 540,000 966,000 120,000 511.000 560,000 470.000 540,000 450,000 $ $ 2,707,000 $ 2,080,000 (584,000) $ (720,000) (740,000) (470,000) (70,000) (1,383,000) (820,000) $ 2,707,000) $ (2,080,000) $ 0 $ 0 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 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.) Show less view transaction list Consolidation Worksheet Entries 1 2 Prepare Entry *TA to defer the intra-entity gain as of the beginning of the year. Note: Enter debits before credits. Transaction Accounts Debit Credit 1 Record entry Clear entry view consolidation entries Prepare Entry ED to remove the excess depreciation for the current year created by the transfer price. Note: Enter debits before credits. Accounts Debit Credit Transaction 2 Record entry Clear entry view consolidation entries