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: Consideration transferred for 70% interest in Wilson Fair value of the 30% noncontrolling interest $ 843,500 361,500 Wilson business fair value Wilson book value Excess fair value over book value To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) $ 1,205,000 821,000 $ 384,000 Assignments to adjust Wilson's assets to fair value: $ 156,000 (33,000) 49,000 172,000 $ 212,000 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 $90,000 125,000 Remaining Intra-Entity Inventory- End of Year (at transfer price) $30,000 50,000 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 $256,800, 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 $278,000. Of this merchandise, 45 percent is still held at year-end. Following are the financial records for the three companies for 2021. 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 House Corporation Wilson Cuddy Company Company $ (945,600) $ (884,500) $ (363,400) 573,000 384,000 196,000 287,000 298,500 92,400 (141,400) 0 (30,000) (30,000) $ (257,000) $ (232,000) $ (75,000) $ (892,000) $ (669,000) $ (171,000) (257,000) (232,000) (75,000) 100,000 96,000 60,000 $ (1,049,000) $ (805,000) $ (186,000) $ 23,000 $ 352,600 $ 68,250 425,300 398,000 85,950 1,028,300 0 134,400 134,400 441,000 382,000 171,000 367,000 132,000 89,300 261,000 340,000 23,500 $ 2,680,000 $ 1,739,000 $ 438,000 $ (693,000) $ (820,000) (1,049,000) $ (2,562,000) (624,000) $ (102,000) (310,000) (150,000) (805,000) (186,000) $ (1,739,000) $ (438,000) 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.) Sales and other revenue Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income December 31, 2021 Accounts House Corporation Wilson Company Cuddy Company Debit Consolidation Entries Credit Noncontrolling Interest Consolidated Balance 945,600 884,500 363,400 278,000 1,915,500 573,000 384,000 196,000 25,020 288,000 890,020 287,000 298,500 92,400 141,400 4,450 141,400 682,350 0 30,000 30,000 60,000 0 257,000 232,000 75,000 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: 343,130 63,757 63,757 15,000 15,000 264,373 House Corporation Wilson Company Cuddy Company Net income Dividends declared House Corporation Wilson Company 892,000 13,230 669,000 669,000 171,000 171,000 257,000 232,000 75,000 878,770 0 0 264,372 100,000 100,000 96,000 67,200 28,800 0 Cuddy Company 60,000 48,000 12,000 0 Retained earnings, 12/31/21 1,049,000 805,000 186,000 1,043,142 Cash and receivables 23,000 352,600 68,250 443,850 Inventory 425,300 398,000 85,950 25,020 884,230 Investment in Wilson Company 1,028,300 67,200 1,095,500 0 Investment in Cuddy Company 134,400 134,400 48,000 0 Buildings 441,000 382,000 171,000 Equipment 367,000 132,000 89,300 140,400 8,250 7,800 16,500 1,126,600 580,050 Land 261,000 340,000 23,500 Goodwill Franchise contracts Total assets Liabilities 140,000 x 32,000 4,000 x 624,500 140,000 28,000 x 2,680,000 1,739,000 438,000 693,000 624,000 102,000 Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings Total liabilities and equities 820,000 310,000 150,000 480,000 1,049,000 805,000 186,000 2,562,000 1,739,000 438,000 2,257,950 2,093,550 3,827,230 1,419,000 64,200 477,330 x 64,200 102,157 477,330 820,000 2,716,330