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

Assignment 8 i Saved Help Save & Exit Submit Check my work Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018: Gibson Davis Sales $ 827, 000) $ (372 , 000) Cost of goods sold 392, 000 172 , 000 Operating expenses 224, 000 83 , 000 Dividend income (12, 000) Net income $ (223,000) $ (117 , 000) Retained earnings, 1/1/18 $ (710, 000) $ (408, 000) Net income (223, 000) (117, 000) Dividends declared 70, 000 20, 000 Retained earnings, 12/31/18 $ 863, 000) $ (505, 000) Cash and receivables 162 , 250 87 , 000 Inventory 596 , 000 227, 000 Investment in Davis 558, 750 Buildings (net 573 , 000 664, 000 Equipment (net) 409, 000 134, 000 Total assets $ 2, 299, 000 $ 1 , 412, 000 Liabilities Common stock (806, 000) (567, 000) Retained earnings, 12/31/18 630, 000) 340 , 000 863, 000) 505, 000 Total liabilities and stockholders' equity $ (2, 299, 000) $ ( 1 , 412, 000) Prey 1 of 1 Next 7 O W X P stv 4 S MacBook Fa F5 F7 DIT F8 DD F9 F10 F1 1 $ % & K 4 5 8 9 O R T Y U O P F G H C K LCheck my work stockholders equity Gibson acquired 60 percent of Davis on April 1, 2018, for $558,750. 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 $372,500. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018. a. Prepare a consolidated income statement for the year ending December 31, 2018. b. Determine the consolidated balance for each of the following accounts as of December 31, 2018: 4 Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required B