Following are the individual financial statements for Bowen and Duncan for the year ending December 31, 2009: LO6 Bowen Duncan Sales..

$ (600,000)

$

(300,000)

Cost of goods sold ...

300,000 140,000 Operating expenses...

174,000 60,000 Dividend Income..

(24,000)

-0-

Netincome....

$(150,000)

$ (100,000)

Retained earninqs, 1/1/09.

$ (700,000)

$

(400,000)

Netincome...

(150,000)

(100,000)

Dividends paid...

80,000 40,000 Retained earninqs, 12/31/09 ...

. . $ (770,000)

$

(460,000)

Cash and receivables...

. . $ 250,000

$

100,000 Inventory....

500,000 190,000 Investment in Duncan ....

526,000

-0-

Buildings (net)...

524,000 600,000 Equipment (net) ...

400,000 400,000 Total assets ......

. . $ 2,200,000

$ 1,290,000 Liabilities......

(800,000)

(490,000)

Commonstock....

(630,000)

(340,000)

Retained earnings, 12/31/09 ....

(770,000)

(460,000)

Total liabilities and stockholders' equity , . .

. . $(2,200,000)

$(1,290,000)

Bowen acquired 60 percent of Duncan on April 1, 2009, for $526,000. On that date, equip¬ ment (with a five-year life) was overvalued by $30,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $300,000. Duncan earned income evenly during the year paid but received the entire dividend on November 1, 2009.

a. Prepare a consolidated income statement for the year ending December 31,2009.

b. Determine the consolidated balance for each of the following accounts as of December 31,2009:
Goodwill Buildings (net)
Equipment (net) Dividends Paid Common Stock