Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018 Gibson Davis Sales Cost of goods sold Operating expenses Dividend income $ (788,000) (387,000) 328,000 270,000 160,000 78,000 Net income Retained eamings, 1/1/18 Net income Dividends declared (200,000) (149,000) (747,000) $ (430,000) (149,000) Retained eamings, 12/31/18 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) (200,000) $ (897,000) 520,000 (559,000) 212,000 579150 599,000 Total assets Liabilities Common stock Retained earnings, 12/31/18 677,000 417 000465,000 S 2,397,000 1.458,000 $(870,000)(559,000) (340,000) (630,000) 237000 t,:58 001 Total liabilities and stockholders' equity $ (2,397,000) (1,458,000) Gibson acquired 60 percent of Davis on April 1, 2018, for $579,150. On that date, equipment owned by Davis (with a five-yoar remaining life) was overvalued by $78,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $386,100. Davis earned Income evenly during the year but deciared the $40,000 dividend on November 1, 2018. a. Prepare a consolidated income statement for the year ending December 31, 2018. b. Determine the consoldated balance for each of the following accounts as of December 31, 2018: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared