The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2017, in exchange for various considerations totaling $720,000. At the acquisition date, the fair value of the noncontrolling Interest was $480,000 and Keller's book value was $960,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition date fair value of $240,000. This intangible asset is being amortized over 20 years Gibson sold Keller land with a book value of $70,000 on January 2, 2017 for $150,000. Keller still holds this land at the end of the current year Keller regularly transfers Inventory to Gibson. In 2017. it shipped inventory costing $188,500 to Gibson at a price of $290,000. During 2018, intra-entity shipments totaled $340,000, although the original cost to Keller was only $204,000. 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 $30,000 at the end of 2018 Sales Cost of goods sold Operating expenses Equity in earnings of Keller Het income Retained earnings, 1/1/18 the income (above) Dividends declared Matained earnings, 12/31/18 Gibson Company Keller Company 5 (940,000) $ (640,000) 640,000 440,000 130,000 95,000 (63,000) $ (233,000) 5 (105,000) $(1,256,000) $ (690,000) (233,000) (105,000) 140,000 40,000 5 (1,349,000) 5 (755,000) $ 183,000 $ 100,000 384,000 $50,000 530,000 460,000 933,000 0 250,000 530,000 510,000 440,000 52,799,000 $ 2,000,000 $ (711,000) $ (265,000) TAR Arcos Peceivable Inventory Investment in Keller muddings and innent (net) $ (640,000) 440,000 95,000 $ $ Sales Cost of goods sold Operating expenses Equity in earnings of Keller Net income Retained earnings, 1/1/18 Net Incone (above) Dividends declared Retained earnings 12/31/18 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) Total assets abilities Common stock Additional paid in capital stained warnings 12/31/18 Yotal abilities and equities $ (940,000) 640,000 130,000 (63,900) $ (233,000) $(1,256,000) (23,000 140,000 $(1, 349,000) $ 183,000 3814,000 530,000 933.000 250,000 510,000 $ 2,790,000 5 (711,000) (230,000) (105,000) (690,000) (105,000) 40,000 (755,000 100,000 550,000 460,000 $ is 539,000 440,000 5 2.080,000 $ (769,000) (460,000) (100.000 (255.000 5 (2,080,000) (1,149,000 5 (2,790,000) (Note Parentheses indicate a credit balance.) o. Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller. b. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $130.000 book value (ct of $280.000) to Keller for $240,000 Instead of land, as the problem reports? Assume that the building had a 10-year remaining in at the date of transfer Required A Required B Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller. (Do not round Intermediate calculations. For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worlesheet. Amounts in the Show more GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2018 Consolidation Entries Accounts Debit Credit Noncontrolling Consolidated Interest Totals Gibson $ (940,000) 5 640 000 130,000 (63 000) $ (233,000) s Keller (640,000) 440,000 95.000 0 (105,000) S 0 Sales Cost of goods sold Operating expenses Equity in eamings of Kollen Separate company net income Consolidated net income To noncontrolling interest To Gibson Company Roland varnings, 1/1 Gibson Retained wings, 1/1 Keller Net income Orvidends declared Relamed samnings 12/31 $ 0 5 (1.256.000) (233,000) 140,000 S (1,340,000) S S 183,000 S (690,000) (105.000) 40.000 (755,000) 100,000