Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson Davis Sales Cost of goods sold (731,000) $ (444,000) 334,000 197,000 Operating expenses 256,000 67,000 Dividend income (12,000) 0 Net income $ (153,000) $ (180,000) Retained earnings, 1/1/21 $ (711,000) $ (487,000) Net income (153,000) (180,000) Dividends declared 60,000 20,000 Retained earnings, 12/31/21 $ (804,000) $ (647,000) Cash and receivables $ 120,000 $ 230,000 Inventory 521,000 251,000 Investment in Davis 603,000 Buildings (net) 590,000 614,000 Equipment (net) Total assets Liabilities 410,000 444,000 $ 2,244,000 $ 1,539,000 $ (810,000) $ (552,000) Common stock Retained earnings, 12/31/21 (630,000) (804,000) (340,000) (647,000) Total liabilities and stockholders' equity $ (2,244,000) $ (1,539,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $603,000. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $39,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $402,000. Davis earned income evenly during the year but declared the $20,000 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: Gibson acquired 60 percent of Davis on April 1, 2021, for $603,000. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $39,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $402,000. Davis earned income evenly during the year but declared the $20,000 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.) Consolidated Income Statement For the Year Ending December 31, 2021