Required:

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

b$.$ How would the consolidation entries in requirement $($a$)$ have differed if Abbey had sold a building on January $2,2023,$ with a $\backslash (\backslash$$ $60,000\backslash )$ book value $($cost of $\backslash (\backslash$$ $140,000\backslash ))$ to Bellstar for $\backslash (\backslash$$ $100,000\backslash )$ instead of land, as the problem reports? Assume that the building had a $10-$year remaining life at the date of transfer.

How would the consolidation entries in requirement $($a$)$ have differed if Abbey had sold a building on January $2,2023,$ with a $\backslash (\backslash$$ $60,000\backslash )$ book value $($cost of $\backslash (\backslash$$ $140,000\backslash ))$ to Bellstar for $\backslash (\backslash$$ $100,000\backslash )$ instead of land, as the problem reports? Assume that the building had a $10-$year remaining life at the date of transfer.

Note: Do not round intermediate calculations. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Consolidation

Worksheet Entries

$1$

$2$

Prepare Entry $*$TA to defer the intra$-$entity gain as of the beginning of the year.

Note: Enter debits before credits. How would the consolidation entries in requirement $($a$)$ have differed if Abbey had sold a building on January $2,2023,$ with a $\backslash (\backslash$$ $60,000\backslash )$ book value $($cost of $\backslash (\backslash$$ $140,000\backslash ))$ to Bellstar for $\backslash (\backslash$$ $100,000\backslash )$ instead of land, as the problem reports? Assume that the building had a $10-$year remaining life at the date of transfer.

Note: Do not round intermediate calculations. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Consolidation Worksheet Entries

$1$

Prepare Entry ED to remove the excess depreciation for the current year created by the transfer price.

Note: Enter debits before credits.