Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018:

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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018:
Following are the individual financial statements for Gibson and Davis

Gibson acquired 60 percent of Davis on April 1, 2018, 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 non-controlling interest was $352,000. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018.
a. Prepare a consolidated income statement for the year ending December 31, 2018.
b. Determine the consolidated balance for each of the following accounts as of December 31,
2018:
Goodwill ....................................... Buildings (net)
Equipment (net) ........................ Dividends Declared
Common Stock .................................................

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Consolidated Income Statement
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...
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Advanced Accounting

ISBN: 978-1259444951

13th edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni

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