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

Gibson acquired $60$ percent of Davis on April $1,2021,$ for $$548,400.$ On that date, equipment owned by Davis $($with a five$-$year

remaining life$)$ was overvalued by $$45,000.$ Also on that date, the fair value of the $40$ percent noncontrolling interest was $$365,600.$

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

Complete this question by entering your answers in the tabs below.

Required A

Required B

Prepare a consolidated income statement for the year ending December $31,2021.($Enter all amounts as positive values.$)$Determine the consolidated balance for each of the following accounts as of December $31,2021$: Goodwill,equipment net, common stock, buildings net, dividends declared