Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018: $ Davis (445,000) 217,000 65,000 $ $ Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and stockholders' equity $ Gibson $ (796,000) 387,000 208,000 (18,000) $ (219,000) (772,000) (219,000) 70,000 (921,000) 169,150 560,000 572,850 610,000 456,000 $ 2,368,000 (817,000) (630,000) (921,000) $ (2,368,000) (163,000) (458,000) (163,000) 30,000 (591,000) 143,000 208,000 $ $ 650,000 435,000 1,436,000 (505,000 (340,000) (591,000) $ (1,436,000) Gibson acquired 60 percent of Davis on April 1, 2018, for $572,850. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $75,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $381,900. 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: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Required A Required B Prepare a consolidated income statement for the year ending December 31, 2018. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2018 Required A Required B > Required A Required B Determine the consolidated balance for each of the following accounts as of December 31, 2018: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared