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

	Gibson				Davis
Sales	$	(847,000	)		$	(470,000	)
Cost of goods sold		390,000				207,000
Operating expenses		271,000				77,000
Dividend income		(24,000	)			0
Net income	$	(210,000	)		$	(186,000	)
Retained earnings, 1/1/18	$	(753,000	)		$	(491,000	)
Net income		(210,000	)			(186,000	)
Dividends declared		80,000				40,000
Retained earnings, 12/31/18	$	(883,000	)		$	(637,000	)
Cash and receivables	$	254,100			$	83,000
Inventory		544,000				310,000
Investment in Davis		603,900				0
Buildings (net)		536,000				680,000
Equipment (net)		408,000				445,000
Total assets	$	2,346,000			$	1,518,000
Liabilities	$	(833,000	)		$	(541,000	)
Common stock		(630,000	)			(340,000	)
Retained earnings, 12/31/18		(883,000	)			(637,000	)
Total liabilities and stockholders' equity	$	(2,346,000	)		$	(1,518,000	)

Gibson acquired 60 percent of Davis on April 1, 2018, for $603,900. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $84,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $402,600. 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