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le taraiices to be reported as of d. To verify the figures determined in requirement (c) prepare a consolidation worksheet for 41. Following are the
le taraiices to be reported as of d. To verify the figures determined in requirement (c) prepare a consolidation worksheet for 41. Following are the individual financial statements for Gibson and Davis for the year ending Decem- December 31. 2018, for this business combination. Adams Corporation and Barstow, Inc., as of December 31, 2018. LO 4-1, 4-4, 4-8 ber 31, 2018: Gibson Davis Sales Cost of goods sold Operating expenses Dividend income $ (600,000) (300,000) 140.000 60,000 300,000 174,000 Net income... $ (150.0o0 $(100,000) $ (700,000) (400,.000) Retained earnings, 1/1/18 Net income Dividends declared 150,000) (00,000) 80.000 40,000 Retained earnings, 12/31/18 Cash and receivables Inventory nvestment in Dovis Buildings (net) Equipment (net) $ (770,000) $(460.000 $ 248,000 100.000 190,000 xc 500,000 528,000 524,000 400.000 600.000 400.000 is d $ 2.200,000 $1,290,000 Total assets Liablities Common stock Retained earnings, 12/31/18 (800,000) (490.000) 630,0001 (340,000 (770,000 (460.000 Total labilities and stockhoiders equity 00.000) $1.290.000 Gibson acquired 60 percest of Davis on April 1, 2018, for $528,000. On that date, oquipment owned by Davis (with a five-ycar remaining life) was overvalued by $30,000. Also os that date, the fair value of the 40 percent noacontrolling interest was $352,000. Davis eaned income evenly during the year but declared the $40,000 dividend on November 1, 2018 . Prepare a consolidated incoebe statement for the year ending Decenber 31. 2018 b. Determise the consolidated balance for each of the following accounts as of December 31, 2018 Goodwill Equipment (net Common Stock Buildings (net) Dividends Declared
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