Problem $4-36($Algo$)($LO $4-1,4-4,4-8)$

Following are the individual financial statements for Gibson and Davis for the year ending December $31,2024$:

Gibson acquired $60$ percent of Davis on April $1,2024,$ for $$583,800.$ On that date, equipment owned by Davis $($with a five$-$year

remaining life$)$ was overvalued by $$60,000.$ Also on that date, the fair value of the $40$ percent noncontrolling interest was $$389,200.$

Davis earned income evenly during the year but declared the $$30,000$ dividend on November $1,2024.$

Requlred:

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

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

Note: Enter all amounts as positive values.