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: $ 714,000 306.000 $ 1,020,000 752,000 $ 268,000 Consideration transferred for 708 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 building (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill indefinite life) $ 83,000 (37,000) 77,000 123,000 145,000 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 2016 2017 Intrantity Purchase $101,250 134,375 Remaining Intrantity Inventory ind of Year at transfer price) $33,750 53, 750 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 $248,000, 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 $284,000. Or this merchandise, 45 percent is still held at year-end, 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 $248,000, 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 $284,000. Of this merchandise, 45 percent is still held at year-end. 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) Dividende declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Building Equipment Land Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equities House Corporation $ (1,014, 835) 641.000 219.000 (116,284) (28,880 $ (300,000) (866,000) (300,000) 100.000 $ 11,066,000) $ 43,736 428,000 902,384 132,080 483,000 415.000 191.000 $ 2,596,000 (710,000) (820,000 (1,066,000) $(2.596,000) Wilson Company $ (839,120) 397,000 276.000 0 (28,880) (195.000) 1641,000) (195.000) 96,000 $ (740,000) $ 246, 120 337,000 132.000 368.000 227.000 384,000 $ 1,695,000 $ (645,000) (310,000) (1740.000 $(1,695,000) Cuddy Company $ 380,100) 213,000 94,900 0 O $ (72,200) (160,000) (72,200) 50,000 (182,200) S 91,250 100,950 O 0 171,000 92,700 16,300 472,200 S (140,000) (150,000 (102,200 (472.2003 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.) HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries Noncontrolling Consolidated House Accounts Wilson Cuddy Corporation Company Company Debit Credit Interest Balance Sales and other revenue (1.014836) (839,120) (380.100) Cost of goods sold 641000 397 000 213,000 Operating expenses 219 000 276.000 94.900 Income of Wilson Company (116.284) Income of Cuddy Company (28.880) (28.880) Net income (300,000) (195.000) (72,200) 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 (865,000 Wilson Company (641.000) en 0 Check my work (641,000) (160,000) (72 200) (300.000) (195.000) 100,000 96.000 (740.000) 246,120 337,000 50,000 (182 200) 91,250 100,950 Wilson Company Cuddy Company Net income Dividends declared House Corporation 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 Liabilties Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings (above) Total abilities and equities (1,066,000) 43,736 428,000 902 384 132.880 483,000 415,000 191.000 132 880 368,000 227.000 384,000 171.000 92,700 16,300 2,596.000 1710,000) 1.695,000 (645,000) 472.200 (140,000 (820.000) (310.000) (1.066.000) (740,000) (2.500.000) (1.695.0001 (150.000) (182,200 (472 200)