$ Consideration transferred for 70% interest in Wilson Fair value of the 30% noncontrolling interest Wilson business fair value Wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (18-year remaining life) To goodwill indefinite life) 742, see 318,00 $ 1,860,000 813, $ 247,00 $ 97,200 (23, see) 73,eee 146, 2ee 100,800 $ House regularly buys inventory from Wilson at a markup of 25 percent more than cost. House's purchases during 2016 and 2017 and related ending inventory balances follow. Intra-Entity Remaining Intra-Entity Inventory Year Purchases End of Year Cat transfer price) 2016 $135,000 545, 2017 162, see 65.ee On January 1, 2018. House and Wilson acted together as co-acquirers of 80 percent of Cuddy Company's outstanding common stock The total price of these shares was $274,400, indicating neither goodwill nor other specific fair-value allocations. Each company put up one-half of the consideration transferred. During 2018, House acquired additional inventory from Wilson at a price of $209.000. Of this merchandise. 45 percent is still held at year-end. $ Wilson Company (882,780) 388,888 273, see $ Cuddy Company (315, 30e) 144,000 99,500 $ $ $ Houte Corporation $ (1,640,384) 605.000 30, e (154,896) (28,220 $ (312,00) $ (919,800) (312,00) 100, S (1,131,000) $ 74,634 394,25e 910, 196 145,920 489,00 482,000 185,00 $ 2,681,000 $ (730,000) (820,000) (3.131.000) 5 (2,681,600) Sales and other revenues Cost of goods sold Operating expenses Income of wilson Company Income of Cuddy Company Net Income Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equities (28,720) (250,0) (618,00 (250.000 96.ee (772,00) 220, ese 530,00 e (71.800) (1930) (71, see) 5e, Bee (214, see) 75,000 156, 100 $ 5 $ 145,92e 335,000 162.000 5 $ 1,702, eee (620, 8e) (310,000 (772.000 $ (1,702,00) 95,500 17,200 543,sve (179,000) (150,000) (214,800 (543, see) $ Note: Parentheses indicate a credit balance. Using the three companies' following financial records for 2018, prepare a consolidation worksheet. The partial equity method based on separate company incomes has been applied to each investment (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) O LI CHICHI DIN CHIC ULICI LUTERII W WIELU WEI Credit columns should be entered as posltive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) Noncontrolling Consolidated Interest Balance HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries House Wilson Cuddy Debit Credit Accounts Corporation Company Company Sales and other revenue (1,040,384) (802.780) (315,300) 605,000 308.000 Cost of goods sold 144.000 Operating expenses 307.000 273.500 99,500 Income of Wison Company (154 898) Income of Cuddy Company (28.720) (28.720) Net income (312.000) (250,000) (71.800) Consolidated net income Net Income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net Income attributable to House Corporation Retained earnings, 1/1/18 House Corporation (10.000) Wison Company (618,000) Cuddy Company (100.000) Net income (312.000) (250,000) (71.800) Dividends declared House Corporation 100.000 Wilson Company 00.000 Cuddy Company 50.000 Retained earings, 12/31/18 (1.131.000) (772,000) (214,800) Cash and receivables 74,834 220.080 75.000 Inventory 304,260 530,000 150.100 Investment in Wilson Company 210,100 Investment in Cuddy Company 145.020 145.820 Buildings 480,000 335,000 200.000 Equipment 482.000 182.000 25.500 Land 185.000 300.000 17.200 Goodaril Franchise contracts 2.681.000 1.702.000 543 300 Liabilities (730,000) (620.000) (170.000) Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling terest in subsidiary companies Commons (820.000) (310,000) (150.000) Petanede bove) (1.131.000) (772.000) (214,800 2.001.000) (1.702.000) 1503 800) Consideration transferred for 7ex interest in Wilson Fair value of the 30% noncontrolling interest Wilson business fair valve wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) 742, eee 318,000 $ 1,86e, eee 813,000 $ 247,880 $ 97,000 (23, see) 73,eee 146, 2ee 100,80 $ House regularly buys inventory from Wilson at a markup of 25 percent more than cost. House's purchases during 2016 and 2017 and related ending inventory balances follow Intra.Entity Remaining Intra-Entity Inventory Year Purchases End of Year Cat transfer price) 2016 $135,000 545, eee 2017 162, see 65.ee On January 1, 2018. House and Wilson acted together as co-acquirers of 80 percent of Cuddy Company's outstanding common stock The total price of these shares was $274,400, indicating neither goodwill nor other specific fair-value allocations. Each company put up one-half of the consideration transferred. During 2018, House acquired additional inventory from Wilson at a price of $209.000. Of this merchandise. 45 percent is still held at year-end. $ $ Wilson Company (802,780) 3e8,800 273, se (28720) (250, (518,000 (250,00 Cuddy Company (315, 30e) 144,000 99,500 B $ $ Houte Corporation 5 (1,648,384) 605,000 30, e (154,896) (28.220 $ (312,600) $ (919,690) (312,00) 100, $(1,131,000) $ 74,634 394,25e 910, 196 145,920 489,00 482,000 185,00 $ 2,681,00 (730,000) (820,000) (3.131.000) 5 (2,681,000) Sales and other revenues Cost of goods sold Operating expenses Income of wilson Company Income of Cuddy Company Net Income Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equities (71, 800) (1930) (71, see) 5e, Bee (214, see) 75.ee 156, 100 $ (772,000) 220,00 530,00 $ $ $ 145,92e 335, ce 162.600 $ $ 1,702,00 (620, 8e) (310,000 (772,eee $ (1,702,eee) 200,000 95,500 17,200 543,800 (179,000) (150,000) (214 800) (543, See) $ Note Parentheses indicate a credit balance Using the three companies' following financial records for 2018, prepare a consolidation worksheet. The partial equity method based on separate company incomes has been applied to each investment (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) UN LIEU Cura H CH CI CLIC LUIRI VIIE WIREL MILWEI Credit columns should be entered as posltve. Negative amounts for the Noncontrolling Interest and Consolidated Totais columns should be entered with a minus sign.) Noncontrolling Consolidated Interest Balance HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries House Wilson Cuddy Debit Credit Accounts Corporation Company Company Sales and other revenue (1,040,384) (802.780) (315,300) 605,000 308.000 Cost of goods sold 144.000 307.000 273.500 Operating expenses 99,500 Income of Wison Company (154 898) Income of Cuddy Company (28,720) (28.720) Net income (312.000) (250,000) (71.800) Consolidated net income Net Income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net Income attributable to House Corporation Retained earnings. 1/1/18: House Corporation (010.000 Wison Company (618,000) Cuddy Company (183.000 Net income (312.000) (250,000) (71.800) Dividends declared House Corporation 100.000 Wilson Company 90.000 Cuddy Company 50.000 Retained earings, 12/31/18 (1.131.000) (772,000) 214.300) Cash and receivables 74,834 220.080 75.000 Inventory 304 260 530,000 158.100 Investment in Wilson Company 210,100 Investment in Cuddy Company 145.020 145.820 Buildings 480.000 335,000 200.000 Equipment 482.000 182.000 25.500 Land 185.000 300.000 17.200 Goodwill Franchise contacts 2.681.000 1.702.000 5463 300 Liabilities (730,000) (620.000) (170,000) Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncotroling merest in subsidiary companies Commons (820.000 (310,000) (150.000) Retained above) (1.131.000 (772.000) (214,800 2.001.000) (1.702.000) 1563.300)