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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018: $ Sales Cost of goods sold Operating expenses
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018: $ 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 (789,080) 393,080 250,000 (12,000) $ (158,000) $ (723,880) (158,000) 80,000 $ (801,080) $ 170,480 515,000 549,680 557,000 458,000 $2,250,000 $ (819,089) (630,000) (801,000) $ 2,250,000) Davis $ (380,000) 180,000 68,880 @ $ (132,000) $ (444,000) (132,000) 20,000 $ (556,089) $ 187,000 121,080 @ 695,800 490,000 $ 1,413,000 $ (517,000) (340,000) (556,000) $ (1,413,000) 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: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared 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 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, 2018. (Enter all amounts as positive values.) $1,074,000 Consolidated Income Statement For the Year Ending December 31, 2018 Revenues Cost of goods sold $ 528,000 Operating expenses Consolidated net income Net income attributable to noncontrolling interest The income to Gibson Company 528,000 546,000 $ 546,000 Recured Required B >
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