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6 The Individual financlal statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent Interest in Keler on January 1, 2017, in exchange for various considerations totaling $960,000. At the acquisition date, the fair value of the noncontrolling interest was $640,000 and Keller's book value was $1,280,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date falr value of $320,000. This Intangible asset is being amortized over 20 years. points Glbson sold Keller land with a book value of $65,000 on January 2, 2017, for $150,000. Keler still holds this land at the end ofthe current year. eBook Keller regularly transters Inventory to Gibson. In 2017, It shipped Inventory costing $259,000 to Glbson at a price of $370,000. During 2018, Intra-entity shipments totaled $420,000, although the original cost to Ke ler was only $273,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Glbson owes Keller $70,000 at the end of 2018. Ask Gibsorn Keller Print Salen Cost of goods sold $ (1,020,000 720,000) 720,000 (81,000 (281,000 $ 520,000 65,000 References Operating expenses Equity in earnings of et income 1/1/1iga Net income (above) Dividends declared Retained $ (1,336, 000 730,000) 135, 000) (281,000) 135,00080,000 Retained earnings (1,482, 000 $785, 000) 12/31/18 Cash Accounts receivable Inventory Investment in Keller Land Buildings and equipment (net) $ 191,000 $ 400,000 610,000 1,047,000 190,000 518,000 630,000 540,000 610,000 520,000 $ 2,956,000 2,380,000 $664,000 955, 00 Total assets Liabilitie Conmon stock Additional paid-in capital (810,000) (540,000) 100, 000) (785, 000) (2,380, 000) (1,482, 000) 12/31/18 Total liabilities and equities $ (2,956,000 Note: Parentheses indicate a credit balance. a. Prepare a worksheet to consolidate the separate 2018 financlal statements for Gibson and Keller b. How would the consolidation entries In requirement (a) have differed If Gibson had sold a building with a $170,000 book value (cost of $360,000) to Keler for $320,000 Instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer

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