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

	Gibson				Davis
Sales	$	(742,000	)		$	(499,000	)
Cost of goods sold		327,000				236,000
Operating expenses		247,000				64,000
Dividend income		(12,000	)			0
Net income	$	(180,000	)		$	(199,000	)
Retained earnings, 1/1/21	$	(798,000	)		$	(481,000	)
Net income		(180,000	)			(199,000	)
Dividends declared		70,000				20,000
Retained earnings, 12/31/21	$	(908,000	)		$	(660,000	)
Cash and receivables	$	211,950			$	85,000
Inventory		545,000				276,000
Investment in Davis		622,050				0
Buildings (net)		617,000				679,000
Equipment (net)		402,000				486,000
Total assets	$	2,398,000			$	1,526,000
Liabilities	$	(860,000	)		$	(526,000	)
Common stock		(630,000	)			(340,000	)
Retained earnings, 12/31/21		(908,000	)			(660,000	)
Total liabilities and stockholders' equity	$	(2,398,000	)		$	(1,526,000	)

Gibson acquired 60 percent of Davis on April 1, 2021, for $622,050. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $54,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $414,700. 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