Determine the consolidated balance for each of the

Question

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2011:

Gibson acquired 60 percent of Davis on April 1, 2011, for $528,000. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $30,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $352,000. Davis earned income evenly during the year but paid the entire dividend on November 1, 2011.

a. Prepare a consolidated income statement for the year ending December 31, 2011.

b. Determine the consolidated balance for each of the following accounts as of December 31, 2011:
Goodwill ..... Buildings (net)
Equipment (net) . Dividends Paid
CommonStock