Gibson acquired $60$ percent of Davis on April $1,2024,$ for $$531,600.$ On that date, equipment owned by Davis $($with a five$-$year

remaining life$)$ was overvalued by $$75,000.$ Also on that date, the fair value of the $40$ percent noncontrolling interest was $$354,400.$

Davis earned income evenly during the year but declared the $$40,000$ dividend on November $1,2024.$

Required:

a$.$ Prepare a consolidated income statement for the year ending December $31,2024.$

b$.$ Determine the consolidated balance for each of the following accounts as of December $31,2024$:

Goodwill

Equipment $($net$)$

Common stock

Buildings $($net$)$

Dividends declared