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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018 Gibson Davis Sales Cost of goods sold Operating expenses Dividend income 772,000) $ 317,000 231,000 18,000 (242,000) (409,500) 225,000 80,500 Net income (104,000) Retained earnings, 1/1/18 Net income Dividends declared 728,000) (242,000) 50,000 920,000) (494,000) (104,000) 30,000 (568,000) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) 204,800 551,000 622,200 591,000 462,000 216,000 198,000 617,00 439,000 $2,431,000 $ 1,470,000 Total assets Liabilities Common stochk Retained earnings, 12/31/18 (881,000) (630,000) (562,000) (340,000) (920,000)(568,000) $ (2,431,000) 1,470,000) Total liabilities and stockholders equity Gibson acquired 60 percent of Davis on April 1, 2018, for $622,200. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $48,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $414,800. 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 Equipment (net) Common stock Buildings (net) Dividends declared

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