Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:

	Gibson				Davis
Sales	$	(798,000	)		$	(418,500	)
Cost of goods sold		303,000				206,000
Operating expenses		273,000				62,500
Dividend income		(18,000	)			0
Net income	$	(240,000	)		$	(150,000	)
Retained earnings, 1/1/21	$	(797,000	)		$	(457,000	)
Net income		(240,000	)			(150,000	)
Dividends declared		60,000				30,000
Retained earnings, 12/31/21	$	(977,000	)		$	(577,000	)
Cash and receivables	$	254,500			$	168,000
Inventory		591,000				272,000
Investment in Davis		586,500				0
Buildings (net)		569,000				605,000
Equipment (net)		486,000				408,000
Total assets	$	2,487,000			$	1,453,000
Liabilities	$	(880,000	)		$	(536,000	)
Common stock		(630,000	)			(340,000	)
Retained earnings, 12/31/21		(977,000	)			(577,000	)
Total liabilities and stockholders' equity	$	(2,487,000	)		$	(1,453,000	)

Gibson acquired 60 percent of Davis on April 1, 2021, for $586,500. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $69,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $391,000. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2021.

1. Prepare a consolidated income statement for the year ending December 31, 2021.

2. Determine the consolidated balance for each of the following accounts as of December 31, 2021:

• Goodwill
• Equipment (net)
• Common stock
• Buildings (net)
• Dividends declared