Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018:

	Gibson				Davis
Sales	$	(774,000	)		$	(359,000	)
Cost of goods sold		351,000				167,000
Operating expenses		197,000				80,000
Dividend income		(18,000	)			0
Net income	$	(244,000	)		$	(112,000	)
Retained earnings, 1/1/18	$	(746,000	)		$	(416,000	)
Net income		(244,000	)			(112,000	)
Dividends declared		60,000				30,000
Retained earnings, 12/31/18	$	(930,000	)		$	(498,000	)
Cash and receivables	$	314,400			$	80,000
Inventory		505,000				168,000
Investment in Davis		576,600				0
Buildings (net)		551,000				592,000
Equipment (net)		453,000				499,000
Total assets	$	2,400,000			$	1,339,000
Liabilities	$	(840,000	)		$	(501,000	)
Common stock		(630,000	)			(340,000	)
Retained earnings, 12/31/18		(930,000	)			(498,000	)
Total liabilities and stockholders' equity	$	(2,400,000	)		$	(1,339,000	)

Gibson acquired 60 percent of Davis on April 1, 2018, for $576,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $33,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $384,400. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018.

1. Prepare a consolidated income statement for the year ending December 31, 2018.

2. Determine the consolidated balance for each of the following accounts as of December 31, 2018:

• Goodwill
• Equipment (net)
• Common stock
• Buildings (net)
• Dividends declared