Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021 $ es 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 $ (643,000) 321,000 180,000 (24,000) $ (166,000) (748,000) (166,000) 70,000 $ (844,000) $ 254,400 550,000 531,600 525,000 495,000 $ 2,356,000 $ (882,000) (630,600) (844.000) $ (2,356,000) Davis $ (397,500) 198,000 75,569 e $ (124,000) $ (495,00) (124,00) 40,000 $ (489,090) 149,000 230,000 @ 612,000 412, een $ 1,483,000 $ (574,600) (340,000 (489, 000) $ (1,403,000) $ Gibson acquired 60 percent of Davis on April 1.2021, for $531600. 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 $354.400. 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 year ending December 31, 2021 b. Determine the consolidated balance for each of the following accounts as of December 31, 2021 Prev 1 of 1 !! Next ere to search O DELL F3 F4 ES F6 F7 F8 F9 F10 F11 F12 Priser Insert $ A 3 % 5 4 6 7 8 9 0 0 T E R T Y O F G H J K 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: ses Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. 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 Prev 1 of 1 Next ere to search DELL F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 PrtScr % & * 3 4 5 6 7 8 9 0 R T U D G H K 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 Goodwill Equipment (net) Common stock Buildings (net) Dividends declared 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 Prev 1 of 1 Nex arch o DELL ES F6 F7 F8 F9 F10 F11 F12 PrtScr Insert % A 4. 5 7 8 9 0 11 R T Y F G H