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 $630,000. At the acquisition date, the fair value of the noncontrolling interest was $420,000 and Keller's book value was $840,000 Keller had developed internally a customer list that was not recorded on its books but had an acquisition date fair value of $210,000. 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 $55,000 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 $169,000 to Gibson at a price of $260,000. During 2021, intro-entity shipments totaled $310,000, although the original cost to Keller was only $186,000. 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 $60,000 at the end of 2021 Gibson Company Keller Company Sales 5 (918, 600) $ (610,000) Cost of goods sold 610,000 410,000 Operating expenses 100,000 30,000 Equity in carnings of Keller 72,000) Net income $ (272,000) (120,000) Retained earnings, 1/1/21 5 (1,226,000) 5 (675,000) let Income (above) (272,000) (120,000) Dividenas declared 125,000 80,000 Retained earnings, 12/31/21 5:41,373,000) 51715,000) 180,000 3 70,000 Accounts receivable 378,000 520,000 Inventory 500,000 430,000 Investment In Keller 1855,888 Land 220,00 500,000 Buildings and equipment (net 507,200 410,000 Total assets $ 2,640,000 $ 1,990,000 3 Cash 5 Keller regularly transfers inventory to Gibson, In 2020, it shipped inventory costing $169,000 to Gibson at a price of $260,000 During 2021, intra-entity shipments totaled $310,000, although the original cost to Keller was only $186,000. 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 560,000 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 Linbilities Common stock Additional paid in capitol Retoined earnings, 12/31/21 Total Habilities and equities Gibson Company Keller Company (910,000) $ (610,000) 610,000 410,000 100.000 30.000 (22,000) 5 (272,000) 5 (120,000) $(1,226,000) $ (675,000 (272,000) (120,000) 125,000 30,000 5 (1,373,000) $(715,000 3 100,000 5 70,000 378,000 520,000 500,000 430,000 855,000 220,000 500.000 507,600 418,000 52,640,000 $ 1,930,000 $ (567,000) 5 (715.000) (700,000) (430,000 (70,000) (197,000) (715.0002 5 (2.640.000) $ 11,932,500) (Note: Parentheses indicate a credt 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 $115,000 book value (cost of $250,000) to Keller for $210,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date uansfer 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 $630,000. At the acquisition date, the fair value of the noncontrolling interest was $420,000 and Keller's book value was $840,000 Keller had developed internally a customer list that was not recorded on its books but had an acquisition date fair value of $210,000. 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 $55,000 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 $169,000 to Gibson at a price of $260,000. During 2021, intro-entity shipments totaled $310,000, although the original cost to Keller was only $186,000. 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 $60,000 at the end of 2021 Gibson Company Keller Company Sales 5 (918, 600) $ (610,000) Cost of goods sold 610,000 410,000 Operating expenses 100,000 30,000 Equity in carnings of Keller 72,000) Net income $ (272,000) (120,000) Retained earnings, 1/1/21 5 (1,226,000) 5 (675,000) let Income (above) (272,000) (120,000) Dividenas declared 125,000 80,000 Retained earnings, 12/31/21 5:41,373,000) 51715,000) 180,000 3 70,000 Accounts receivable 378,000 520,000 Inventory 500,000 430,000 Investment In Keller 1855,888 Land 220,00 500,000 Buildings and equipment (net 507,200 410,000 Total assets $ 2,640,000 $ 1,990,000 3 Cash 5 Keller regularly transfers inventory to Gibson, In 2020, it shipped inventory costing $169,000 to Gibson at a price of $260,000 During 2021, intra-entity shipments totaled $310,000, although the original cost to Keller was only $186,000. 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 560,000 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 Linbilities Common stock Additional paid in capitol Retoined earnings, 12/31/21 Total Habilities and equities Gibson Company Keller Company (910,000) $ (610,000) 610,000 410,000 100.000 30.000 (22,000) 5 (272,000) 5 (120,000) $(1,226,000) $ (675,000 (272,000) (120,000) 125,000 30,000 5 (1,373,000) $(715,000 3 100,000 5 70,000 378,000 520,000 500,000 430,000 855,000 220,000 500.000 507,600 418,000 52,640,000 $ 1,930,000 $ (567,000) 5 (715.000) (700,000) (430,000 (70,000) (197,000) (715.0002 5 (2.640.000) $ 11,932,500) (Note: Parentheses indicate a credt 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 $115,000 book value (cost of $250,000) to Keller for $210,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date uansfer