Gibson acquired 60 percent of Davis on April 1, 2021, for $576,600. On that date, equipment...

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Gibson acquired 60 percent of Davis on April 1, 2021, for $576,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $33,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $384,400. Davis earned income evenly during the year but declared the $40,000 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: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required B Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2021 Revenues Cost of goods sold Operating expenses Consolidated net income Noncontrolling interest in CNI Controlling interest in CNI < Required A 0 0 $ 0 Required B > Gibson acquired 60 percent of Davis on April 1, 2021, for $576,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $33,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $384,400. Davis earned income evenly during the year but declared the $40,000 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: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required B Determine the consolidated balance for each of the following accounts as of December 31, 2021: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared < Required A Required B > Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson Sales $ (774,000) $ Davis (359,000) Cost of goods sold 351,000 167,000 Operating expenses 197,000 Dividend income (18,000) 80,000 0 Net income $ (244,000) $ (112,000) Retained earnings, 1/1/21 $ (746,000) $ (416,000) Net income (244,000) (112,000) Dividends declared 60,000 30,000 Retained earnings, 12/31/21 $ (930,000) $ (498,000) Cash and receivables $ 314,400 $ Inventory 505,000 80,000 168,000 Investment in Davis 576,600 0 Buildings (net) 551,000 592,000 Equipment (net) Total assets Liabilities 453,000 499,000 $ 2,400,000 $ $ 1,339,000 (840,000) $ (501,000) Common stock (630,000) (340,000) Retained earnings, 12/31/21 (930,000) (498,000) Total liabilities and stockholders' equity $ (2,400,000) $ (1,339,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $576,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $33,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $384,400. Davis earned income evenly during the year but declared the $40,000 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: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Gibson acquired 60 percent of Davis on April 1, 2021, for $576,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $33,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $384,400. Davis earned income evenly during the year but declared the $40,000 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: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required B Prepare a consolidated income statement for the year ending December 31, 2021. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2021 Revenues Cost of goods sold Operating expenses Consolidated net income Noncontrolling interest in CNI Controlling interest in CNI < Required A 0 0 $ 0 Required B > Gibson acquired 60 percent of Davis on April 1, 2021, for $576,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $33,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $384,400. Davis earned income evenly during the year but declared the $40,000 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: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below. Required A Required B Determine the consolidated balance for each of the following accounts as of December 31, 2021: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared < Required A Required B > Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson Sales $ (774,000) $ Davis (359,000) Cost of goods sold 351,000 167,000 Operating expenses 197,000 Dividend income (18,000) 80,000 0 Net income $ (244,000) $ (112,000) Retained earnings, 1/1/21 $ (746,000) $ (416,000) Net income (244,000) (112,000) Dividends declared 60,000 30,000 Retained earnings, 12/31/21 $ (930,000) $ (498,000) Cash and receivables $ 314,400 $ Inventory 505,000 80,000 168,000 Investment in Davis 576,600 0 Buildings (net) 551,000 592,000 Equipment (net) Total assets Liabilities 453,000 499,000 $ 2,400,000 $ $ 1,339,000 (840,000) $ (501,000) Common stock (630,000) (340,000) Retained earnings, 12/31/21 (930,000) (498,000) Total liabilities and stockholders' equity $ (2,400,000) $ (1,339,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $576,600. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $33,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $384,400. Davis earned income evenly during the year but declared the $40,000 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: Goodwill Equipment (net) Common stock Buildings (net) Dividends declared