Question

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018 (768,000) (381,000) 380,000 182,000 (24,000) (230,000) % (108,000) Sales Cost of goods sold Operating expenses Dividend income 204,000 69,000 Net incone $ (761,000) (230,000) 50,000 (451,000) 108,000) 40,000 Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 $(941,0) (519,000) Cash and receivables Inventory Investment in Davis $245,400 582,000 552,660 598,000 443,000 495 090 2,421,000 $1,427,0e0 72,000 220,000 Buildings (net) Equipment (net) 640,000 Total assets Liabilities Common stock $(850,000) (568,000) (340,000) 519,000) (630,000) stockholders(941,000 (2,421,000) Retained earnings, 12/31/18 Total liabilities and stockholders equity (1,427,000) Glbson acquired 60 percent of Davis on April 1, 2018, for $552.600 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 $368,400 Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018 o. 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 Lt Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Complete this question by entering your answers in the tabs below Required A Required B remaining life) was overvalued by $78,000 Also on that date, the fair value of the 40 percent noncontrolling interest was $368 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 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 31,2 018. (Enter all amounts as positive values.) Consolidated Income Statement For the Year Ending December 31, 2018 evenues Cost of goods sold Operating expenses Consolidated net income Net income attributable to n Required B > Saved Ketained earnings, 12/31/18 Total liabilities and stockholders equity 941,066 s (2,421,00) (1,427,e0e) Gibson acquired 60 percent of Davis on April 1, 2018, for $552,600. 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 $368,400 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 Complete this question by entering your answers in the tabs below Required A Required 8 Determine the consolidated balance for each of the following accounts as of December 31, 2018 Goodwill Equipment (net) Common stock Buildings (net) Dividends declared Required A

Answer 1

Qune = 45 tOOOナ30,000 - net income- Nef inCome 4 Thees accoont balance indicates tRe ntialv me

age 35 260O 368 Ч00 103000 exce O) mor evenueGQawin nales ナご96350

950501053+50 CO 584000 53300O 58400051000 Opeiafn ng expen cs 3 82000 +69000 298100 ofen nen co

10 5375O ol533000 CO 018t00 21080 lb3oo0 T8000 451000 t 495000-#8000 + 00

Commnafcho balance o30000 aen Buil ding 598006400 38000 Bcuidina (net)38000 Ovides Oividends declaned ะ450,000