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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2015: Gibson acquired 60 percent of Davis on April
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2015: Gibson acquired 60 percent of Davis on April 1, 2015, for $569, 700. 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 $379, 800. 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. (Enter all amounts as positive values.)
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