Note: Problems 1 through 37 assume the use of the acquisition method.Problems 38 through 40 assume the use of the purchase method. Following are the individual financial statements for Gibson and

Note: Problems 1 through 37 assume the use of the acquisition method.Problems 38 through 40 assume the use of the purchase method.
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
Common Stock

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