Problem 4-39 (LO 4-1, 4-4, 4-8)

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2015:

		Gibson			Davis
Sales	$	(594,000	)	$	(498,000	)
Cost of goods sold		307,000			231,000
Operating expenses		143,000			73,000
Dividend income		(18,000	)		0
Net income	$	(162,000	)	$	(194,000	)
Retained earnings, 1/1/15	$	(784,000	)	$	(489,000	)
Net income		(162,000	)		(194,000	)
Dividends declared		80,000			30,000
Retained earnings, 12/31/15	$	(866,000	)	$	(653,000	)
Cash and receivables	$	145,100		$	157,000
Inventory		576,000			241,000
Investment in Davis		600,900			0
Buildings (net)		611,000			606,000
Equipment (net)		438,000			481,000
Total assets	$	2,371,000		$	1,485,000
Liabilities	$	(875,000	)	$	(492,000	)
Common stock		(630,000	)		(340,000	)
Retained earnings, 12/31/15		(866,000	)		(653,000	)
Total liabilities and stockholders equity	$	(2,371,000	)	$	(1,485,000	)

Gibson acquired 60 percent of Davis on April 1, 2015, for $600,900. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $69,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $400,600. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2015.

a.	Prepare a consolidated income statement for the year ending December 31, 2015.(Enter all amounts as positive values.) I need thenon controllinginterest in CNI!!!!