Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018 Gibson $ Davis (444,e00) 197,000 67,000 Sales Cost of goods sold Operating expenses Dividend income (731,eee) 334,000 256,000 (12,000) (153,000) Net income Book (180,000) Retained earnings, 1/1/18 Net income Dividends declared (711,000) (153,00e) 60,000 (487,000) (180,e00) 20,000 Print ferences Retained earnings, 12/31/18 (804,000) (647,000) Cash and receivables Inventory 120,000 521,000 603,000 590,000 410,000 230,000 251,000 Investment in Davis Buildings (net) Equipment (net) Total assets 614,000 444,000 $ 2,244,000 1,539,000 (810,000) (630,000) (804,000) Liabilities (552,000) (340,000 (647,000) Common stock Retained earnings, 12/31/18 Total liabilities and stockholders equity $ (2,244,000) S (1,539,000) Gibson acquired 60 percent of Davis on April 1, 2018, for $603,000. On that date, equipment pwned by Davis (with a five-year remaining life) was overvalued by $39,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $402,000 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 1 Complete this question by entering your answers in the tabs below. 100 Required A Required B points Prepare a consolidated income statement for the year ending December 31, 2018. (Enter all amounts as positive values.) eBook Consolidated Income Statement Print For the Year Ending December 31, 2018 References Required B> Complete this question by entering your answers in the tabs below. Requifed Required A Determine the consolidated balance for each of the following accounts as of December 31, 2018: Goodwill ces Equipment (net) Common stock Buildings (net) Dividends declared Required A