Gibson acquired 60 percent of Davis on April 1, 2018, for $589,050. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $66,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $392,700. 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 Complete this question by entering your answers in the tabs below Required A Required 8 Determine the consolidated balance for each of the following accounts as of December 31, 2018 Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018: Gibson $ (720,000) (482,000) Davis Sales Cost of goods sold Operating expenses Dividend income 371,000 202,000 (24,000)0 $(171,000) (167,000) 239,000 76,000 Net income Retained earnings, 1/1/18 Net income Dividends declared (715,000) (445,000) (167,000) (171,000) 0,00040,000 Retained earnings, 12/31/18 Cash and receivables Inventor Investment in Davis Buildings (net) Equipment (net) (816,000) (572,000) 93,950 $ 5,000 258,000 569,000 589,050 595,000 655,000 466, 000476,000 $ 2,313,000 1,442,000 Total assets Liabilities Common stock Retained earnings, 12/31/18 $ (867,000) (530,000) (340,000) 630,000 816,000 72,000 Total 1iabilities and stockholders' equity (2,313,000) (1.442,000) Gibson acquired 60 percent of Davis on April 1, 2018, for $589,050. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $66,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $392,700. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018