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: $ 784,000 336,000 $ 1,120,000 757,000 $ 363,000 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) $ 107,000 (34,400) 85,500 158, 100 204,900 $ 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 $146,250 171,875 Remaining Intra-Entity Inventory- End of Year (at transfer price) $48,750 68,750 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 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 1,049,508 781,860 360,500 Cost of goods sold 644,000 360,000 187,000 Operating expenses 273,000 293,500 94,400 Income of Wilson Company 89,852 Income of Cuddy Company 31,640 31,640 Net income 254,000 160,000 79.100 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 853,000 Wilson Company 654,000 Cuddy Company 165,000 Net income 254,000 160,000 79,100 0 0 100,000 96,000 60,000 184.100 0 Dividends declared House Corporation Wilson Company Cuddy Company Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land 718,000 225,360 389,000 80,750 28,250 1,007,000 26,708 400,100 951,552 133,640 433,000 362,000 207,000 234,000 133,640 354,000 176,000 385,000 93,200 20,900 Goodwill Franchise contracts Total assets 1,663,000 457,100 0 2,514,000 687,000 Liabilities 635,000 123,000 Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock 0 310,000 820,000 1,007,000 2,514,000 150,000 184,100 Retained earnings Total liabilities and equities 718,000 1,663,000 457,100 0 0 0 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: $ 784,000 336,000 $ 1,120,000 757,000 $ 363,000 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) $ 107,000 (34,400) 85,500 158, 100 204,900 $ 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 $146,250 171,875 Remaining Intra-Entity Inventory- End of Year (at transfer price) $48,750 68,750 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 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 1,049,508 781,860 360,500 Cost of goods sold 644,000 360,000 187,000 Operating expenses 273,000 293,500 94,400 Income of Wilson Company 89,852 Income of Cuddy Company 31,640 31,640 Net income 254,000 160,000 79.100 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 853,000 Wilson Company 654,000 Cuddy Company 165,000 Net income 254,000 160,000 79,100 0 0 100,000 96,000 60,000 184.100 0 Dividends declared House Corporation Wilson Company Cuddy Company Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land 718,000 225,360 389,000 80,750 28,250 1,007,000 26,708 400,100 951,552 133,640 433,000 362,000 207,000 234,000 133,640 354,000 176,000 385,000 93,200 20,900 Goodwill Franchise contracts Total assets 1,663,000 457,100 0 2,514,000 687,000 Liabilities 635,000 123,000 Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock 0 310,000 820,000 1,007,000 2,514,000 150,000 184,100 Retained earnings Total liabilities and equities 718,000 1,663,000 457,100 0 0 0