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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018 Gibson (789,000)380,000) Davis 393,000 250,000 Cost of goods
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018 Gibson (789,000)380,000) Davis 393,000 250,000 Cost of goods sold Operating expensers Dividend income 180,000 68,000 (12 000)0 $ (158,000) 132,000) (132,000) (556,000) Net income Retained earnings, 1/1/18 Net incone Dividends declared $ (723,000) 444,000 158,000) 20.000 S (801,000) Retained earnings,12/31/18 Cash and receivables Inventory Investment in Davis Buildings (net Equipnent (net) $ 170,400 107,000 15,000 549,600 557,000 458,0 121,000 695,000 490 000 5 2,250,000 1,413,000 Total assets Liabilitien Common stock Retained earnings, 12/31/18 (819,000) (517,000) 630,000 340,000) Total 1iabilities and (2,250,000 1.413,000) stockholders equity Gibson acquired 60 percent of Davis on April 1, 2018, for $549,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $66,000.Also on that date, the fair value of the 40 percent noncontrolling interest was $366,400. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018 a. Prepare a consolidated income statement for the year ending December 31, 2018 b. Determine the consolidated balance for each of the following accounts as of December 31, 2018
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