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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson acquired 60 percent of Davis on Apra
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson acquired 60 percent of Davis on Apra 1, 2021, for $617,850. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $72,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $411,900 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, 202t: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Prepare a consolidated income statement for the year ending December 31,2021 . (Enter 111 amounts as positive values.)
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