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Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:

	Gibson				Davis
Sales	$	(810,000)			$	(428,500)
Cost of goods sold		388,000				200,000
Operating expenses		248,000				74,500
Dividend income		(18,000)				0
Net income	$	(192,000)			$	(154,000)
Retained earnings, 1/1/21	$	(734,000)			$	(490,000)
Net income		(192,000)				(154,000)
Dividends declared		50,000				30,000
Retained earnings, 12/31/21	$	(876,000)			$	(614,000)
Cash and receivables	$	50,500			$	69,000
Inventory		537,000				233,000
Investment in Davis		619,500				0
Buildings (net)		621,000				682,000
Equipment (net)		480,000				464,000
Total assets	$	2,308,000			$	1,448,000
Liabilities	$	(802,000)			$	(494,000)
Common stock		(630,000)				(340,000)
Retained earnings, 12/31/21		(876,000)				(614,000)
Total liabilities and stockholders' equity	$	(2,308,000)			$	(1,448,000)

Gibson acquired 60 percent of Davis on April 1, 2021, for $619,500. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $78,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $413,000. Davis earned income evenly during the year but declared the $30,000 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

-Please check my answers for A and explain any area I am wrong in, and help with calculations for B

My answers for A:

Revenues		$1,131,375
Cost of Goods Sold	$538,000
Operating Expenses	$292,175
Consolidated net income		$301,200
Noncontrolling interest in CNI		$41,520
Controlling interest in CNI		$259,680

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