Help Savs Following are the individual financial statements for Gibson and Davis

Question

Help Savs Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018 Gibson Sales cost of goods sold $ (741,000)(447,000) 196,000 62,000 333, 000 175,000 (12,000) Operating expenses Dividend income (245, 000) (189,000) Retained earnings, 1/1/18 $(799,000)$ (427,000) Net income Dividends declared (245,000)189,000) 2 20,000 $(994, 000) (596,000) 211,000 Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) S-39- 198-00- 543,000 556,950 549,000 412,000 629,000 451,000 1,489,000 S 2,453,000 S (829,000) (553,000) Total assets Liabilities Common stock Retained earnings, 12/31/18 (630,000)(340,000) (994,000)(596,000) Total liabilities and stockho olders' equity(2,453,000) $ (1,489, 000) Gibson acquired 60 percent of Davis on April 1, 2018, for $556,950. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $42,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $371,300 Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018.

Explanation / Answer

Answr A - consolidated Income Statement

Answer B - Goodwill - 68,400 $

                 Equipment - 863,000 $

                Building - 1,178,000 $

                Stock - 630,000 $

              Dividen - 66000 $

Consolidated Income Statement For the year ending 31.12.2018 (in $) Sales -1188000 COS 529000 Ope Exp 237000 Dividend 16000 -406000

Answer B - Goodwill - 68,400 $

                 Equipment - 863,000 $

                Building - 1,178,000 $

                Stock - 630,000 $

              Dividen - 66000 $

Net Income

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