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					$	784,000
Fair value of the 30% noncontrolling interest						336,000
Wilson business fair value					$	1,120,000
Wilson book value						757,000
Excess fair value over book value					$	363,000
Assignments to adjust Wilsons assets to fair value:
To buildings (20-year remaining life)	$	107,000
To equipment (4-year remaining life)		(34,400	)
To franchises (10-year remaining life)		85,500				158,100
To goodwill (indefinite life)					$	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	Intra-Entity Purchases	Remaining Intra-Entity Inventory End of Year (at transfer price)
2019	$146,250	$48,750
2020	171,875	68,750

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 $252,000, 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 $222,000. Of this merchandise, 45 percent is still held at year-end. Following are the financial records for the three companies for 2021.

	House Corporation				Wilson Company				Cuddy Company
Sales and other revenues	$	(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	)			0				0
Income of Cuddy Company		(31,640	)			(31,640	)			0
Net income	$	(254,000	)		$	(160,000	)		$	(79,100	)
Retained earnings, 1/1/21	$	(853,000	)		$	(654,000	)		$	(165,000	)
Net income (above)		(254,000	)			(160,000	)			(79,100	)
Dividends declared		100,000				96,000				60,000
Retained earnings, 12/31/21	$	(1,007,000	)		$	(718,000	)		$	(184,100	)
Cash and receivables	$	26,708			$	225,360			$	80,750
Inventory		400,100				389,000				28,250
Investment in Wilson Company		951,552				0				0
Investment in Cuddy Company		133,640				133,640				0
Buildings		433,000				354,000				234,000
Equipment		362,000				176,000				93,200
Land		207,000				385,000				20,900
Total assets	$	2,514,000			$	1,663,000			$	457,100
Liabilities	$	(687,000	)		$	(635,000	)		$	(123,000	)
Common stock		(820,000	)			(310,000	)			(150,000	)
Retained earnings, 12/31/21		(1,007,000	)			(718,000	)			(184,100	)
Total liabilities and equities	$	(2,514,000	)		$	(1,663,000	)		$	(457,100	)

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.)

HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2021 Consolidation Entries Noncontrolling Consolidated Accounts Debit Credit Interest Balance House Corporation 1,049,508 644,000 Wilson Company 781,860 360,000 293,500 Cuddy Company 360,500 187.000 94,400 273,000 89,852 31,640 254,000 31,640 160,000 79,100 Sales and other revenue Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income 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 Wilson Company Cuddy Company 853,000 654,000 165,000 79,100 Net income 254,000 160.000 100,000 98,000 60.000 184,100 1.007.000 718,000 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 Goodwill 225,360 389,000 80,750 28,250 26,708 400,100 951,552 133,640 433,000 362,000 207.000 133,640 354,000 176,000 234,000 93,200 385,000 20.900 Franchise contracts 2,514,000 1.663.000 457.100 687,000 635,000 123,000 Total assets Liabilities Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings Total liabilities and equities 310,000 820,000 1.007.000 2,514,000 718,000 1.663.000 150,000 184,100 457.100 0 0 HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2021 Consolidation Entries Noncontrolling Consolidated Accounts Debit Credit Interest Balance House Corporation 1,049,508 644,000 Wilson Company 781,860 360,000 293,500 Cuddy Company 360,500 187.000 94,400 273,000 89,852 31,640 254,000 31,640 160,000 79,100 Sales and other revenue Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income 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 Wilson Company Cuddy Company 853,000 654,000 165,000 79,100 Net income 254,000 160.000 100,000 98,000 60.000 184,100 1.007.000 718,000 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 Goodwill 225,360 389,000 80,750 28,250 26,708 400,100 951,552 133,640 433,000 362,000 207.000 133,640 354,000 176,000 234,000 93,200 385,000 20.900 Franchise contracts 2,514,000 1.663.000 457.100 687,000 635,000 123,000 Total assets Liabilities Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings Total liabilities and equities 310,000 820,000 1.007.000 2,514,000 718,000 1.663.000 150,000 184,100 457.100 0 0