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: Consideration transferred for 70% interest in Wilson $ 843,500 Fair value of the 30% noncontrolling interest 361, 500 Wilson business fair value $ 1, 205, 000 Wilson book value 821, 090 Excess fair value over book value 384, 000 Assignments to adjust Wilson's assets to fair value: To buildings (20-year remaining life) To equipment (4-year remaining life) $ 156, 000 (33, 090) To franchises (10-year remaining life) 49, 000 172,000 To goodwill ( indefinite life) $ 212, 006 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 Intra-Entity Remaining Intra-Entity Inventory- Purchases End of Year (at transfer price) 2016 $90 , 090 $30, 090 2017 125, 000 50, 000 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 $256,800, 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 $278,000. Of this merchandise, 45 percent is still held at year-end House Wilson Cuddy Corporation company company Sales and other revenues $ (945, 600) $ (884,500) $ (363, 400) Cost of goods sold 573, 000 384, 090 196, 000 Operating expenses 287, 000 92, 400 Income of Wilson Company 141, 400 298, 500 Income of Cuddy Company (30, 090 (30, 000) Net income (257, 090) $ (232,000) (75, 000) Retained earnings, 1/1/18 892, 000) 669, 090 171, 000) Net income (above 257, 000 100, 000 1232, 090 96, 000 (75, 000 Dividends declared 60, 000 Retained earnings, 12/31/18 $ (1, 049, 000) $ (805, 000) (186, 000) Cash and receivables 23, 000 352, 600 Inventory 425, 300 1, 028, 300 398, 090 38, 250 85, 950 Investment in Wilson Company Investment in Cuddy Company 134,400 134, 400 Buildings 441, 000 382, 090 171, 000 Equipment 367, 000 89 , 300 Land 261, 000 132, 090 340, 000 23,500 Total assets $ 2,680, 000 $ 1, 739, 090 438, 000 Liabilities 693, 080) (624, 090) (102, 000) Common stock (820, 090 310, 090 (150, 000) Retained earnings, 12/31/18 (1, 049, 000 (805, 090 186, 000 Total liabilities and equities $ (2, 562, 000 $ (1, 739, 000) (438, 000) Note: Parentheses indicate a credit balance. 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 Accounts House Wilson Cuddy Corporation Company Company Debit Credit Interest Balance Sales and other revenue (945,600) (884,500) (363,400) Cost of goods sold $73,000 384,000 196,000 Operating expenses 287,000 298,500 92,400 Income of Wilson Company (141,400) Income of Cuddy Company (30,000) (30,000) Net income (257,000) 232,000) (75,000) Consolidated net income 0 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 (892,000) Wilson Company (669,000) Cuddy Company (171,000) Net income (257,000 (232,000) (75,000) Dividends declared House Corporation 100,000 Wilson Company 96,000 Cuddy Company 60.000 Retained earnings, 12/31/18 (1,049,000) (805,000) (186,000) Cash and receivables 13,000 152,600 B,250 Inventory 425,300 398,000 85,950 Investment in Wilson Company 1,028,300 Investment in Cuddy Company 134,400 134,400 Buildings 441,000 382,000 171,000 Equipment 367,000 132,000 89,300 an 261,000 340,000 23,500 Goodwill Franchise contracts Total assets 2,680,000 1,739,000 438.000 Liabilities (693,000) 624,000) (102,000) Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock (820,000) (310,000) (150,000) Retained earnings (above) (1,049,000) (805,000) 186,000) Total liabilities and equities (2,562,000) (1,739,000) (438,000) 0 0