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Gibson acquired 60 percent of Davis on April 1,2024, for $531,600. On that date, equipment...

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Accounting

Gibson acquired 60 percent of Davis on April 1,2024, for $531,600. On that date, equipment owned by Davis (with a five-year
remaining life) was overvalued by $75,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $354,400.
Davis earned income evenly during the year but declared the $40,000 dividend on November 1,2024.
Required:
a. Prepare a consolidated income statement for the year ending December 31,2024.
b. Determine the consolidated balance for each of the following accounts as of December 31,2024:
Goodwill
Equipment (net)
Common stock
Buildings (net)
Dividends declared
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