2 Problem 4-42 (Algo) (LO 4-1, 4-4, 4-8) Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: 012731 Sales Cost of goods sold Operating expenses Dividend Income Net income Net income $ Gibson (827,000) $ Davis (372,000) 392,000 224,000 (12,000) 172,000 $3,000 $ (223,000) $ (117,000) Retained earnings, 1/1/21 $ (710,000) $ (408,000) (223,000) (117,000) Dividends declared 70,000 20,000 Retained earnings, 12/31/21 $ (863,000) $ (505,000) Cash and receivables $ 162,250 $ Inventory 596,000 87,000 227,000 Investment in Davis 558,750 e Buildings (net) 573,000 664,000 Equipment (net) Total assets 409,000 434,000 $ 2,299,000 $ 1,412,000 Liabilities $ (806,000) $ (567,000) Common stock (630,000) (340,000) Retained earnings, 12/31/21 (863,000) (505,000) Total liabilities and stockholders' $ (2,299,000) $ (1,412,000) equity Gibson acquired 60 percent of Davis on April 1, 2021, for $558.750. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $63.000. Also on that date, the fair value of the 40 percent noncontrolling interest was $372,500. Davis earned income evenly during the year but declared the $20,000 dividend on November 1, 2021. a. Prepare a consolidated income statement for the year ending December 31, 2021. b. Determine the consolidated balance for each of the following accounts as of December 31, 2021: 2 b. Determine the consolidated balance for each of the following accounts as of December 31, 2021 01:26:53 Mc Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required B Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 20211 Required D > 2 b. Determine the consolidated balance for each of the following accounts as of December 31, 2021: 201223 Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required D Determine the consolidated balance for each of the following accounts as of December 31, 2021: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared