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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 2020, in exchange for various considerations totaling $660.000. At the acquisition date, the fair value of the noncontrolling interest was $440,000 and Kelter's book value was $880,000. Keller had developed internally a customer list that not recorded on its books but had acquisition date for value of $220,000 This intangible asset is being amortired over 20 years on the equity method to account for its investment in Keller Gibson sold Keller land with a book value of $60.000 on January 2, 2020 for $30,000. Keller till holds this and at the end of the current year Keller regularly transfers Inventory to Gibson. In 2020, it shipped inventory costing 5162,000 to Gibson at a price of $270,000. During 2021, intra entity shipments totaled $320,000, although the original cost to Keller was only 5224.000 In each of these years, 20 percent of the merchandise was not resold to outside parties the period following the transfer. Gibson owes Kellier $65.000 at the end of 2021 Gibson Keller Company Company Sales $ (920,000) $ (620,000) Cost of goods sold 620, eee 420,00 Operating expenses 110,000 85,800 Equity in earnings of Keller (69,600) Net income $ 1259,800) (115.100) Retained earnings, 1/1/21 $(1,236,000) $ (680,000) Net income (above) (259,000) (115,000) Dividends declared 13e, eea 30.000 Retained earnings, $(1,365,000 $ (765,000) 12/31/21 Cash $ 181,600 $ Be, ea Accounts receivable 380,000 530,000 Inventory 510,000 440,000 Investment in Keller 983,800 Land 238,000 510,000 Buildings and equipment 588,000 (net) 420,000 Total assets $ 2,712,000 5 1,980,000 Liabilities $ (637,880) 5 (695,000) Common stock (710,000) (440,000) Additional paid-in (80,eee) capital Retained earnings, 12/31/21 (1,365, 800) (765.000) Total Liabilities and 3(2,712,000) ${1,980,000) equities Note: Parentheses indicate a credit balance) 2. Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller b. How would the consolidation entries in requirement() have differed Gibson had sold building on January 2 2020, with a $120,000 book value cost of $260,000 to Keller for $220,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining ate at the date of transfer Complete this question by entering your answers in the tabs below. Required Required A B Prepare a worksheet to consolidate the separate 2021 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 worksheet. Input all amounts as positive values.) Show less GIBSON AND KELLER Complete this question by entering your answers in the tabs below. Required Required Prepare a worksheet to consolidate the separate 2021 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 worksheet. Input all amounts as positive values.) Show less GIBSON AND KELLER Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Accounts Gibson Keller Debe Credit Noncontrolling Consolidated Interest Totals Sales $ $ 1920.000) (620,000) Cost of goods sold 620.000 420.000 Operating experises 110,000 85.000 Equity in earnings of Kobler (69.000) 0 Separate company net $ $ Income 259.000) (115.000) Consolidated net income To non controlling Interest To Gibson Company Retained earings, 1/1215 Gibson (1.236.000) Retained earnings, 1/121 (580.000) - Keller Net income (259.000) (115.000 Dividends declared 130.000 30.000 Retained earnings. $ $ 12/31/2 (1.365 000) LT65.000) Cash $161.000 $80,000 Accounts receivable 380.000 530.000 Inventory 510.000 4407000 Investment in Kotor 903.000 (Land 230.000 510.000 Buildings and equipment 508,000 net) 420,000 Customer ist 3 S Total assets $ 2,712 000 1.950 000 $ $ Liabilities (6370000695.000 Common stock (10.000) (440.000) Additional paid in capital (6000) Retained earnings 12/31/21 (1,365,000) (785,000) Noncontro ng interest 1/1/21 Noncontrolling interest 12/31/21 Total abses and $ egully 12.712.000.000.000 Required >

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