Following are the individual financial statements for Gibson and Davis for the year endingDecember 31, 2015:Gibson DavisSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (600,000) $ (300,000)Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 140,000Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174,000 60,000Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,000 ) –0–Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (150,000 ) $ (100,000 )Retained earnings, 1/1/15 . . . . . . . . . . . . . . . . . . . . . . . . . $ (700,000) $ (400,000)Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (150,000) (100,000)Dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 40,000Retained earnings, 12/31/15 . . . . . . . . . . . . . . . . . . . . . $ (770,000 ) $ (460,000 )Cash and receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 248,000 $ 100,000Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 190,000Investment in Davis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528,000 –0–Buildings (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524,000 600,000Equipment (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 400,000Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,200,000 $ 1,290,000Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (800,000) (490,000)Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (630,000) (340,000)Retained earnings, 12/31/15 . . . . . . . . . . . . . . . . . . . . . . . (770,000 ) (460,000 )

Total liabilities and stockholders’ equity $(2,200,000 ) $(1,290,000 )Gibson acquired 60 percent of Davis on April 1, 2015, for $528,000. On that date, equipment owned by Davis (with a 5-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 declared the $40,000 dividend on November 1, 2015.a. Prepare a consolidated income statement for the year ending December 31, 2015.b. Determine the consolidated balance for each of the following accounts as of December 31, 2015:Goodwill Buildings (net)Equipment (net) Dividends DeclaredCommon Stock