Question 8

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson acquired 60 percent of Davis on April 1, 2021, for $617,850. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $72,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $411,900. Davis earned income evenly during the year but declared the $30,000 dividend on November 1, 2021. a. Prepare a consolidated income statement for the year ending December 31, 2021. b. Determine the consolidated balance for each of the following accounts as of December 31, 2021: Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Determine the consolidated balance for each of the following accounts as of December 31,2021