Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2013:

Gibson acquired 60 percent of Davis on April 1, 2013, for $528,000. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $30,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $352,000. Davis earned income evenly during the year but paid the entire dividend on November 1, 2013.
a. Prepare a consolidated income statement for the year ending December 31, 2013.
b. Determine the consolidated balance for each of the following accounts as of December 31, 2013:

  • CreatedAugust 05, 2013
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