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 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) $ 791,000 339,000 $ 1,130,000 721,000 $ 409,000 $ 139,000 (25,200) 81,000 194,800 $ 214,200 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 $112,500 143,750 Remaining Intra-Entity Inventory- End of Year (at transfer price) $37,500 57,500 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 $268,800, 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 $259,000. 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 House Corporation Wilson Company Cuddy Company $ (758,680) $ (311,400) $ (1,001,504) Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income Net income (above) 606,000 242,000 321,000 306,000 141,000 97,100 (92,176) (29,320) (29,320) $ (275,000) $ (161,000) $ (73,300) Retained earnings, 1/1/21 $ (822,000) $ (275,000) (606,000) $ (161,000) (186,000) Dividends declared 100,000 96,000 Retained earnings, 12/31/21 $ (997,000) $ (671,000) (73,300) 50,000 $ (209,300) Cash and receivables $ 29,054 $ 99,280 Inventory 416,750 349,000 72,000 128,800 Investment in Wilson Company 952,476 e Investment in Cuddy Company Buildings Equipment Land Total secate 143,720 143,720 8 410,000 364,000 146,000 305,000 216,000 92,800 205,000 392,000 24,700