House Corporation has been operating profitably since its creation in 1960. At the beginning of 2016, House acquired a 70 percent ownership in Wilson Company. At the acquisition date, House prepared the following fair-value allocation schedule:

Consideration transferred for 70% interest in Wilson					$	784,000
Fair value of the 30% noncontrolling interest						336,000
Wilson business fair value					$	1,120,000
Wilson book value						810,000
Excess fair value over book value					$	310,000
Assignments to adjust Wilsons assets to fair value:
To buildings (20-year remaining life)	$	131,000
To equipment (4-year remaining life)		(33,600	)
To franchises (10-year remaining life)		41,500				138,900
To goodwill (indefinite life)					$	171,100

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:

Year	Intra-Entity Purchases	Remaining Intra-Entity Inventory End of Year (at transfer price)
2016	$90,000	$30,000
2017	125,000	50,000

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 $264,000, 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 $235,000. Of this merchandise, 45 percent is still held at year-end.

	House Corporation				Wilson Company				Cuddy Company
Sales and other revenues	$	(1,031,664	)		$	(864,380	)		$	(322,500	)
Cost of goods sold		570,000				338,000				152,000
Operating expenses		290,000				317,500				97,700
Income of Wilson Company		(146,216	)			0				0
Income of Cuddy Company		(29,120	)			(29,120	)			0
Net income	$	(347,000	)		$	(238,000	)		$	(72,800	)
Retained earnings, 1/1/18	$	(894,000	)		$	(633,000	)		$	(180,000	)
Net income (above)		(347,000	)			(238,000	)			(72,800	)
Dividends declared		100,000				96,000				50,000
Retained earnings, 12/31/18	$	(1,141,000	)		$	(775,000	)		$	(202,800	)
Cash and receivables	$	11,814			$	227,880			$	76,500
Inventory		405,950				490,000				121,400
Investment in Wilson Company		956,116				0				0
Investment in Cuddy Company		141,120				141,120				0
Buildings		469,000				356,000				203,000
Equipment		431,000				147,000				94,600
Land		274,000				321,000				20,300
Total assets	$	2,689,000			$	1,683,000			$	515,800
Liabilities	$	(728,000	)		$	(598,000	)		$	(163,000	)
Common stock		(820,000	)			(310,000	)			(150,000	)
Retained earnings, 12/31/18		(1,141,000	)			(775,000	)			(202,800	)
Total liabilities and equities	$	(2,689,000	)		$	(1,683,000	)		$	(515,800	)

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.)

Noncontrolling Consolidated Interest Balance HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries House Wilson Cuddy Accounts Debit Credit Corporation Company Company Sales and other revenue (1,031,664) (864,380) (322,500) Cost of goods sold 570.000 338,000 152.000 Operating expenses 290,000 317,500 97,700 ncome of Wilson Company (146,216) ncome of Cuddy Company (29,120) (29,120) Net income (347,000) (238,000) (72,800) Consolidated net income Vet 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 (894,000) Wilson Company (633,000) Cuddy Company (180,000) Vet income (347,000) (238,000) (72,800) Dividends declared House Corporation 100,000 Wilson Company 96.000 96,000 (775,000) 227,880 490,000 50,000 (202,800) 76,500 121,400 (1,141,000) 11,814 405.950 956, 116 141,120 469,000 431,000 274,000 141,120 356,000 147,000 321,000 203,000 94,600 20,300 Wilson Company Cuddy Company Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Goodwill Franchise contracts Total assets Liabilities Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings (above) Total liabilities and equities 515,800 2,689,000 (728,000) 1,683,000 (598,000) (163,000) (820,000) (310,000) (1,141,000) (775,000) (2,689,000) (1,683,000) (150,000) (202,800) (515,800) Noncontrolling Consolidated Interest Balance HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries House Wilson Cuddy Accounts Debit Credit Corporation Company Company Sales and other revenue (1,031,664) (864,380) (322,500) Cost of goods sold 570.000 338,000 152.000 Operating expenses 290,000 317,500 97,700 ncome of Wilson Company (146,216) ncome of Cuddy Company (29,120) (29,120) Net income (347,000) (238,000) (72,800) Consolidated net income Vet 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 (894,000) Wilson Company (633,000) Cuddy Company (180,000) Vet income (347,000) (238,000) (72,800) Dividends declared House Corporation 100,000 Wilson Company 96.000 96,000 (775,000) 227,880 490,000 50,000 (202,800) 76,500 121,400 (1,141,000) 11,814 405.950 956, 116 141,120 469,000 431,000 274,000 141,120 356,000 147,000 321,000 203,000 94,600 20,300 Wilson Company Cuddy Company Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Goodwill Franchise contracts Total assets Liabilities Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings (above) Total liabilities and equities 515,800 2,689,000 (728,000) 1,683,000 (598,000) (163,000) (820,000) (310,000) (1,141,000) (775,000) (2,689,000) (1,683,000) (150,000) (202,800) (515,800)