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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Sales Cost of goods sold Operating expenses Dividend

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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and stockholders' equity Gibson Davis $ (758,000) $ (381,500) 372,000 148,000 252,000 63,500 (18,000) 0 $(152,000) $ (170,000) $ (708,000) $ (447,000) (152,000) (170,000) 80,000 30,000 $ (780,000) $ (587,000) $ 42,300 $ 70,000 568,000 225,000 566,700 0 596,000 690,000 483,000 456,000 $ 2,256,000 $ 1,441,000 $ (846,000) $ (514,000) (630,000) (340,000) (780,000) (587,000) $(2,256,000) $(1,441,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $566,700. 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 $377,800. 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 vear ending December 31, 2021. 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 Revenues $ 1,044,125 Cost of goods sold $ 483,000 Operating expenses 292,875 775,875 Consolidated net income 268,250 Noncontrolling interest in CNI 48,300 Controlling interest in CNI $ 219,950 Red Roswired B Complete this question by entering your answers in the tabs below. Required A Required 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

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