Following are the Individual financial statements for Gibson and Davis for the year ending December 31, 2021: $ Davis (422,000) 211,000 66,000 $ Sales Cost of goods sold Operating expenses Dividend income Net Income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and stockholders' equity Gibson (821,000) 382,000 262,000 24,000) $ (201,000) (774,000) (201,000) 50,000 $ (925,000) 258,650 540,000 595, 350 547,000 444,000 $ 2,385,000 $ (830,000) (630,000) (925,000) $(2,385,000) $ $ (145,000) $ (405,000) (145,000) 40,000 $ (590,000) $ 171,000 235,000 0 661,000 432,000 $ 1,499,000 (569,000) (340,000) (590,000) $11,499,000) us Gibson acquired 60 percent of Davis on April 1, 2021, for $595,350. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $39,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $396,900. Davis earned Income evenly during the year but declared the $40,000 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: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared