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$\backslash$table$[[$Accounts$,$Abbey,Bellstar,Debit,Credit,Noncontrolling Interest,Consolidated Totals$],[$Sales$,$$ $(820,000),$$ $(520,000),$$$220,000>,,0>,$$$(1,120,000)],[$Cost of goods sold,$520,000,320,000,17,600,231,900,0>=,625,700],[$Operating expenses,$120,000,35,000,6,000,,0?,161,000],[$Equity in earnings of Bellstar,$(99,000),0,99,000,,0?,0(],[$Separate company net income,$$(279,000),$$ $(165,000),,,,],[$Consolidated net income,,,,,,$$3],[$To noncontrolling interest,,,,,$(61,320),61,320],[$To Abbey Company,,,,,,$$],[$Retained earnings, Abbey, $1/1,^($$$)(1,136,000),,,,0$o$.,$$$0],[$Retained earnings, Bellstar, $1/1,,(630,000),630,000,,0,0(2)],[$Net income,$(279,000),(165,000),,,0>,(271,980)],[$Dividends declared,$125,000,35,000,,21,000,14,000,125,000],[$Retained earnings, $12/31,$$$1,290,000),$$ $(760,000),,,,$$$1\backslash$times $],[$Cash$,$$ $171,000,$$$80,000,,,0$vv$,$$$251,000],[$Accounts receivable,$360,000,430,000,,40,000,0$o$.,750,000],[$Inventory$,410,000,340,000,,17,600,0$o$.,732,400],[$Investment in Bellstar,$792,000,,21,000,813,000,0*,02],[$Land$,130,000,410,000,,55,000>,0$o$.,485,000],[$Buildings and equipment $($net$),498,000,320,000,,,0$o$.,818,000],[$Trademark$,,,114,000,6,000,0>,108,000],[$Total assets,$$2,361,000,$$ $1,580,000,,,,$$$0],[$Liabilities$,$$ $(461,000),$$ $(380,000),40,000,,0$o$.,$$$(801,000)],[$Common stock,$(610,000),(340,000),340,000,,0,(610,000)],[$Additional paid$-$in capital,,$(100,000),100,000,,0>,02],[$Retained earnings, $12/31,(1,290,000),(760,000),,,1\backslash$times $,1\backslash$times $],[$Noncontrolling interest $1/1,,,,,1\backslash$times $,],[$Noncontrolling interest $12/31,,,,,$$$1(1$X$,1\backslash$times $],[$Total liabilities and equity,$\_((2,361,000)),$$$\_((1,580,000)),$$ $1,587,600,$$ $1,184,500,,$$$1\backslash$times $]]$The individual financial statements for Abbey Company and Bellstar Company for the year ending December $31,2024,$ follow. Abbey acquired a $60$ percent interest in Bellstar on January $1,2023,$ in exchange for various considerations totaling $$330,000.$ At the acquisition date, the fair value of the noncontrolling interest was $$220,000$ and Bellstar$$s book value was $$430,000.$ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition$-$date fair value of $$120,000.$ This intangible asset is being amortized over $20$ years. Abbey uses the partial equity method to account for its investment in Bellstar.

Abbey sold Bellstar land with a book value of $$55,000$ on January $2,2023,$ for $$110,000.$ Bellstar still holds this land at the end of the current year.

Bellstar regularly transfers inventory to Abbey. In $2023,$ it shipped inventory costing $$110,500$ to Abbey at a price of $$170,000.$ During $2024,$ intra$-$entity shipments totaled $$220,000,$ although the original cost to Bellstar was only $$132,000.$ In each of these years, $20$ percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $$40,000$ at the end of $2024.$

Items Abbey Company Bellstar Company

Sales $ $(820,000)$ $ $(520,000)$

Cost of goods sold $520,000320,000$

Operating expenses $120,00035,000$

Equity in earnings of Bellstar $(99,000)0$

Net income $ $(279,000)$ $ $(165,000)$

Retained earnings, $1/1/24$ $ $(1,136,000)$ $ $(630,000)$

Net income $($above$)(279,000)(165,000)$

Dividends declared $125,00035,000$

Retained earnings, $12/31/24$ $ $(1,290,000)$ $ $(760,000)$

Cash $ $171,000$ $ $80,000$

Accounts receivable $360,000430,000$

Inventory $410,000340,000$

Investment in Bellstar $792,0000$

Land $130,000410,000$

Buildings and equipment $($net$)498,000320,000$

Total assets $ $2,361,000$ $ $1,580,000$

Liabilities $ $(461,000)$ $ $(380,000)$

Common stock $(610,000)(340,000)$

Additional paid$-$in capital $0(100,000)$

Retained earnings, $12/31/24(1,290,000)(760,000)$

Total liabilities and equities $ $(2,361,000)$ $ $(1,580,000)$

Note: Parentheses indicate a credit balance.

Required:

Prepare a worksheet to consolidate the separate $2024$ financial statements for Abbey and Bellstar.

How would the consolidation entries in requirement $($a$)$ have differed if Abbey had sold a building on January $2,2023,$ with a $$70,000$ book value $($cost of $$160,000)$ to Bellstar for $$120,000$ 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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