Following are the individual financial statements for Gibson and Davis for the year ending December 31,...
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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson Davis Sales $ (731,000) $ (444,000) Cost of goods sold 334,000 197,000 Operating expenses 256,000 Dividend income (12,000) 67,000 0 Net income $ (153,000) $ (180,000) Retained earnings, 1/1/211 $ (711,000) (487,000) Net income (153,000) (180,000) Dividends declared 60,000 20,000 Retained earnings, 12/31/21 $ (804,000) $ (647,000) Cash and receivables. $ 120,000 $ 230,000 Inventory 521,000 251,000 Investment in Davis. 603,000 0 Buildings (net) 590,000 614,000 Equipment (net) Total assets Liabilities 410,000 444,000 $ 2,244,000 $ 1,539,000 $ (810,000) $ (552,000) Common stock (630,000) (340,000) Retained earnings, 12/31/21 (804,000) (647,000) Total liabilities and stockholders' equity $ (2,244,000) $ (1,539,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $603,000. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $39,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $402,000. Davis earned income evenly during the year but declared the $20,000 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 $1,064,000 $ 481,750 300,400 782,150 281,850 $ 281,850 Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021: Gibson Davis Sales $ (731,000) $ (444,000) Cost of goods sold 334,000 197,000 Operating expenses 256,000 Dividend income (12,000) 67,000 0 Net income $ (153,000) $ (180,000) Retained earnings, 1/1/211 $ (711,000) (487,000) Net income (153,000) (180,000) Dividends declared 60,000 20,000 Retained earnings, 12/31/21 $ (804,000) $ (647,000) Cash and receivables. $ 120,000 $ 230,000 Inventory 521,000 251,000 Investment in Davis. 603,000 0 Buildings (net) 590,000 614,000 Equipment (net) Total assets Liabilities 410,000 444,000 $ 2,244,000 $ 1,539,000 $ (810,000) $ (552,000) Common stock (630,000) (340,000) Retained earnings, 12/31/21 (804,000) (647,000) Total liabilities and stockholders' equity $ (2,244,000) $ (1,539,000) Gibson acquired 60 percent of Davis on April 1, 2021, for $603,000. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $39,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $402,000. Davis earned income evenly during the year but declared the $20,000 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 $1,064,000 $ 481,750 300,400 782,150 281,850 $ 281,850
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