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

	Gibson				Davis
Sales	$	(810,000	)		$	(428,500	)
Cost of goods sold		388,000				200,000
Operating expenses		248,000				74,500
Dividend income		(18,000	)			0
Net income	$	(192,000	)		$	(154,000	)
Retained earnings, 1/1/21	$	(734,000	)		$	(490,000	)
Net income		(192,000	)			(154,000	)
Dividends declared		50,000				30,000
Retained earnings, 12/31/21	$	(876,000	)		$	(614,000	)
Cash and receivables	$	50,500			$	69,000
Inventory		537,000				233,000
Investment in Davis		619,500				0
Buildings (net)		621,000				682,000
Equipment (net)		480,000				464,000
Total assets	$	2,308,000			$	1,448,000
Liabilities	$	(802,000	)		$	(494,000	)
Common stock		(630,000	)			(340,000	)
Retained earnings, 12/31/21		(876,000	)			(614,000	)
Total liabilities and stockholders' equity	$	(2,308,000	)		$	(1,448,000	)

Gibson acquired 60 percent of Davis on April 1, 2021, for $619,500. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $78,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $413,000. 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