3 Check my work Problem 5-35 (LO 5-1, 5-2, 5-3, 5-4, 5-5. 5-6,5-7) 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 $870,000. At the acquisition date, the fair value of the noncontrolling interest was $580,000 and Keller's book value was $1.160.000 Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $290.000. This intangible asset is being amortized over 20 years. ints eBook Gibson sold Keller land with a book value of $50.000 on January 2, 2017. for $120,000 Keller still holds this land at the end of the current year ReferencesKeller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $238,000 to Gibson at a price of $340.000 During 2018, intra-entity shipments totaled $390,000, although the original cost to Keller was only $253.500 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 end of 2018. Keller Company CompanyY s (990, 000) Sales Cost of goods sold Operating expenses Equity in earnings of Keller s(990,000) (690.000) 690,000 180,000 490,000 50,000 (90,000) Net income $ (210,000) (150, 000) (1,306,000) (715, 000) Retained earnings, 1/1/18 Net income (above) Dividends declared (210, 000) 120,000 (150,000) 65, 000 Retained earnings, s (1,396,900) (800,000) 12/31/18 Cash Accounts receivable Inventory $ 188,000 100, 000 600,000 510,000 394, 000 580,000 3 of 9 Eli Next > 09 11s