Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson Sales $ (827,000) $ Davis (372,000) Cost of goods sold 392,000 172,000 Operating expenses 224,000 83,000 Dividend income (12,000) 0 Net income $ (223,000) $ (117,000) Retained earnings, 1/1/21 $ (710,000) $ (408,000) Net income (223,000) (117,000) Dividends declared 70,000 20,000 Retained earnings, 12/31/21 $ (863,000) $ (505,000) Cash and receivables $ 162,250 $ 87,000 Inventory 596,000 227,000 Investment in Davis 558,750 0 Buildings (net) 573,000 664,000 Equipment (net) Total assets Liabilities Common stock 409,000 434,000 $ 2,299,000 $ 1,412,000 $ (806,000) $ (567,000) (630,000) (340,000) Retained earnings, 12/31/21 (863,000) (505,000) Total liabilities and stockholders' equity $ (2,299,000) $ (1,412,000) Gibson acquired 60 percent of Davis on April 1, 2021, 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, 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 Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2021 Revenues Cost of goods sold Operating expenses Consolidated net income Noncontrolling interest in CNI Controlling interest in CNI $ 1,106,000 $ 521,000 276,800 797,800 308,200 777,250 $ (469,050) Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2021 Revenues Cost of goods sold Operating expenses Consolidated net income Noncontrolling interest in CNI Controlling interest in CNI $ 1,106,000 $ 521,000 276,800 797,800 308,200 (31,320) $ 339,520 Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2021 Revenues Cost of goods sold Operating expenses Consolidated net income Noncontrolling interest in CNI Controlling interest in CNI $ 1,106,000 $ 521,000 276,800 797,800 308,200 31.320x $ 276,880 Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2021 Revenues Cost of goods sold Operating expenses Consolidated net income Noncontrolling interest in CNI Controlling interest in CNI $ 1,106,000 $ 521,000 276,800 797,800 308,200 (777,250) x $ 1,085,450