The individual financial statements for Union Company and Essex Company for the year ending December 31, 2018, follow. Union acquired a 60 percent interest in Essex 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 Essex's book value was $670,000. Essex 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 Union sold Essex land with a book value of $85,000 on January 2, 2017, for $170,000. Essex still holds this land at the end of the current year Essex regularly transfers inventory to Union. In 2017, it shipped inventory costing $149,500 to Union at a price of $230,000. During 2018, intra-entity shipments totaled $280,000, although the original cost to Essex 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. Union owes Essex $45,000 at the end of 2018. Union Company Essex Company Sales Cost of goods sold Operating expenses Equity in earnings of Essex Net income Retained earnings, 1/1/18 Net income (above) Dividends declared Retained earnings, 12/31/18 Cash Accounts receivable Inventory Investment in Essex Land 12/31/2018 $ -880,000 580,000 180,000 -81,000 $-201,000 $ -1,196,000 -201,000 110,000 s -1,287,000 177,000 372,000 470,000 834,000 190,000 12/31/2018 $ -580,000 380,000 65,000 0 135,000 $ -660,000 135,000 65,000 $730,000 90,000 490,000 400,000 470,000 Buildings and equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 Total liabilities and equities (Note: Negative number indicate a credit balance.) 504,000 $ 2,547,000 $ -590,000 670,000 380,000 $ 1,830,000 $ -620,000 -400,000 -80,000 730,000 S -1,830,000 1,287,000 -2,547,000 a. Prepare a worksheet to consolidate the separate 2018 financial statements for Fairleigh andDickinson. b. Prepare US GAAP compliant Balance Sheet and Income Statement as of December 31, 2018, and for the year then ended c. How would the consolidation entries in requirement (a) have differed if Union had sold a building with a $100,000 book value (cost of $220,000) to Essex for $180,000 instead of land, as the problem reports? Assume that the building d a 10-year remaining life at the date of transfer. Prepare journal entries; do not make a new worksheet or FS