Gibson $ (741,000) 333,000 Operating expenses 175,000 Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Sales Cost of goods sold Davis (447,000) 196,000 62,000 Dividend income (12,000) Net income $ (245,000) $ (189,000) Retained earnings, 1/1/21 $ (799,000) $ (427,000) Net income (245,000) (189,000) Dividends declared 50,000 20,000 Retained earnings, 12/31/21 $ (994,000) $ (596,000) Cash and receivables $ 392,050 $ 198,000 Inventory 543,000 211,000 Investment in Davis 556,950 Buildings (net) 549,000 629,000 Equipment (net) Total assets Liabilities 412,000 451,000 $ 2,453,000 $ 1,489,000 $ (829,000) $ (553,000) Common stock (630,000) (340,000) (994,000) (596,000) $ (2,453,000) $ (1,489,000) Retained earnings, 12/31/21 Total liabilities and stockholders' equity Gibson acquired 60 percent of Davis on April 1, 2021, for $556,950. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $42,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $371,300. Davis earned Income evenly during the year but declared the $20,000 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, 2021: