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Following are the individual financial statement for Gibson and Davis for the year ending December 31, 2015: Gibson acquired 60 percent of Davis on April
Following are the individual financial statement for Gibson and Davis for the year ending December 31, 2015: Gibson acquired 60 percent of Davis on April 1, 2015. for $528,000. On that dale, equipment owned by Davis (with a 5-year remaining life) was overvalued by $30,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $352,000. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2015. Prepare a consolidated income statement for the year ending December 31, 2015. Determine the consolidated balance for each of the following accounts as of December 31, 2015: Goodwill Buildings (net) Equipment (net) Dividends Declared Common Stock
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