House Corporation has been operating profitably since its creation in 1960. At the beginning of 2019, House acquired a 70 percent ownership in Wilson Company. At the acquisition date, House prepared the following fair-value allocation schedule: $ 742,000 318,000 $ 1,060,000 813,000 $ 247,000 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 (10-year remaining life) To goodwill (indefinite life) $ 97,000 (23,800) 73,000 146,200 100,800 House regularly buys inventory from Wilson at a markup of 25 percent more than cost. House's purchases during 2019 and 2020 and related ending inventory balances follow: Year 2019 2020 Intra-Entity Purchases $135,000 162,500 Remaining Intra-Entity Inventory- End of Year (at transfer price) $45,000 65,000 On January 1, 2021, 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 2021, House acquired additional inventory from Wilson at a price of $209,000. Of this merchandise, 45 percent is still held at year-end. Following are the financial records for the three companies for 2021. $ Wilson Company (802,780) 308,000 273,500 $ Cuddy Company (315, 300) 144,000 99,500 $ $ $ Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equities (28,720) (250,000) (618,000) (250,000) 96,000 (772,000) 220,080 530,000 $ (71,800) (193,000) (71,800) 50,000 (214,800) 75,000 156, 100 $ House Corporation $ (1,040, 384) 605,000 307,000 (154,896) (28,720) $ (312,000) $ (919,000) (312,000) 100,000 $ (1,131,000) $ 74,634 394,250 910, 196 145,920 489,000 482,000 185,000 $ 2,681,000 $ (730,000) (820,000) (1,131,000) $ (2,681,000) $ $ 145,920 335,000 162,000 309,000 $ 1,702,000 $ (620,000) (310,000) (772,000) $ (1,702,000) 200,000 95,500 17,200 543,800 (179,000) (150,000) (214,800) (543,800) $ Note: Parentheses indicate a credit balance. Prepare a consolidation worksheet for 2021. 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. Input all amounts as positive values.) Noncontrolling Consolidated Interest Balance 0 0 HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2021 Consolidation Entries House Wilson Cuddy Accounts Debit Credit Corporation Company Company Sales and other revenue 1,040,384 802,780 315,300 Cost of goods sold 605,000 308,000 144.000 Operating expenses 307,000 273,500 99,500 Income of Wilson Company 154.896 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, 1/1/21: House Corporation 919,000 Wilson Company 618,000 Cuddy Company 193,000 Net income 312.000 250.000 71.800 Dividends declared House Corporation 100,000 Wilson Company 96,000 Cuddy Company 50,000 Retained earnings, 12/31/21 1,131,000 772.000 214.800 Cash and receivables 74,634 220,080 75,000 Inventory 394,250 530,000 156,100 Investment in Wilson Company 910.196 Investment in Cuddy Company 145.920 145,920 Buildings 489,000 335,000 200.000 Equipment 482,000 162.000 95,500 Land 185,000 309,000 17,200 Goodwill Franchise contracts Total assets 2,681,000 1,702,000 543,800 Liabilities 730,000 620,000 179.000 Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock 820,000 310.000 150.000 Retained earnings 1,131,000 772,000 214.800 Total liabilities and equities 2,681,000 1,702,000 543,800 0 0 0 0