Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:

	Gibson				Davis
Sales	$	(749,000	)		$	(421,000	)
Cost of goods sold		363,000				181,000
Operating expenses		240,000				82,000
Dividend income		(24,000	)			0
Net income	$	(170,000	)		$	(158,000	)
Retained earnings, 1/1/21	$	(751,000	)		$	(404,000	)
Net income		(170,000	)			(158,000	)
Dividends declared		60,000				40,000
Retained earnings, 12/31/21	$	(861,000	)		$	(522,000	)
Cash and receivables	$	287,300			$	92,000
Inventory		562,000				183,000
Investment in Davis		569,700				0
Buildings (net)		526,000				688,000
Equipment (net)		403,000				454,000
Total assets	$	2,348,000			$	1,417,000
Liabilities	$	(857,000	)		$	(555,000	)
Common stock		(630,000	)			(340,000	)
Retained earnings, 12/31/21		(861,000	)			(522,000	)
Total liabilities and stockholders' equity	$	(2,348,000	)		$	(1,417,000	)

Gibson acquired 60 percent of Davis on April 1, 2021, 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, 2021.

1. Prepare a consolidated income statement for the year ending December 31, 2021.

2. Determine the consolidated balance for each of the following accounts as of December 31, 2021:

• Goodwill
• Equipment (net)
• Common stock
• Buildings (net)
• Dividends declared