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Following are the individual financial statements for Gibson and Davis for the year ending December 31 2015 Gibson acquired 60 percent of Davis on April 1 2015 for $528000 On that date

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2015:

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:

Jul 22 2020 View more View Less

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