Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021; Gibson Sales Cost of goods sold $ (827,000) $ 392,000 Davis (372,000) 172,000 Operating expenses 224,000 83,000 Dividend income (12,000) e 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 $ Inventory 596,000 87,000 227,000 Investment in Davis 558,758 e Buildings (net) 573,000 664,000 Equipment (net) Total assets Liabilities 409,000. 434,000 $ 2,299,000 $ 1,412,000 $ (806,000) $ (567,000) Common stock (630,000) (340,000) Retained earnings, 12/31/21 (863,000) (ses,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 $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: