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: 770,000 330,000 1,100,000 251,00 369.000 Consideration transferred for you interest in WEGO Fair value of the sono controlling interest Wilson business Fair value Wilson book value Excess fair value over book valve eignants to adat in ste total values To buildings (20-year remaining life) To equiparring To franchis (10-year remaining 11) To indefinite 11te) 306,000 (31,200) 55,500 110,300 230,700 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: Turity Ring Thera-Inity Inventory 131,250 843,750 2030 159,375 63.750 ind of Ya Le preo 2010 On January 1, 2021, House and Wilson acted together as co-acqulrers of 80 percent of Cuddy Company's outstanding common stock. The total price of these shares was $260,800. 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 $233,000. Of this merchandise, 45 percent is still held at year-end. Following are the financial records for the three companies for 2021 (401,700) 228,000 99,600 0 S $ Sales and other ravenna Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income Retained earninge, 1/1/21 Net income (above) Dividends deelared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total asseta iabilities Common stock Retained earnings, 12/31/21 Total liabilities and equities (976.600) 597,000 221,000 (136,752) (29,640) (325,000) . (684,000) (325.000) 100.000 $ (1,109,000) $ 79,458 405,050 970,452 140,040 453,000 326,000 256,000 $ 2,630,000 (701,000) (820,000) (1.109,000) $(2,630,000) 1959,060) 370.000 294,500 0 (29,640) $ (225,000) (628,000) (225,000) 96,000 $ (757,000) 264,960 338,000 0 140,040 389,000 204,000 351,000 $ 1,687,000 ( 620,000) (310,000) (257.000) $(1,687,000) $ $ (74,100) (176,000) (74,100) 50,000 (200, 100) B2,250 78,350 0 0 221,000 90,200 18,300 490,100 (140,000) (150,000) (200, 100) (490, 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 Noncontrolling Consolidated Interest Balance HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Workshoot December 31, 2021 Consolidation Entries House Wilson Cuddy Accounts Debit Credit Corporation Company Company Sales and other revenue 976,608 859,880 401,700 Cont of goods sold 597 000 370,000 228,000 221,000 Operating expenses 294,500 99,600 Income of Wilson Company 136,752 Income of Cuddy Company 29,640 29,640 Net Income 325,000 225,000 74.100 Consolidated net income Not Income whrhulable to norcontrolling interest (Wilson) Net Income tributable to trocontrolling interest (Ouddy) Not income tributable to House Corporation Retained Gamings 111121 House Corporation 8.84.000 Wilson Company 628.000 Cundy Company 176,000 Net income 325,000 225.000 74,100 Dividends dedored 0 0 100,000 96.000 757.000 284,900 338,000 50,000 200,00 82.250 78.350 House Corporation Winion Company Caddy Company Retained earrings, 12/31/21 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Wilong Land Goodwill Franchise 1,100,000 29468 405,050 970,452 140,040 453,000 300,000 250.000 140.040 380,000 204,000 351.000 221.000 90.200 18.500 2.630,000 701,000 167.000 620,000 400,100 140,000 $ Utbil Nonouncing Interlin Ouddy Nincontrolling stores in Wilson Norconing interest in subsidiary common Commons Ruined caring Total abis antequios 820.000 1.100.000 2.830,000 310,000 757.000 1687,000 150,000 200,100 490,100 O 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: 770,000 330,000 1,100,000 251,00 369.000 Consideration transferred for you interest in WEGO Fair value of the sono controlling interest Wilson business Fair value Wilson book value Excess fair value over book valve eignants to adat in ste total values To buildings (20-year remaining life) To equiparring To franchis (10-year remaining 11) To indefinite 11te) 306,000 (31,200) 55,500 110,300 230,700 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: Turity Ring Thera-Inity Inventory 131,250 843,750 2030 159,375 63.750 ind of Ya Le preo 2010 On January 1, 2021, House and Wilson acted together as co-acqulrers of 80 percent of Cuddy Company's outstanding common stock. The total price of these shares was $260,800. 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 $233,000. Of this merchandise, 45 percent is still held at year-end. Following are the financial records for the three companies for 2021 (401,700) 228,000 99,600 0 S $ Sales and other ravenna Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income Retained earninge, 1/1/21 Net income (above) Dividends deelared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total asseta iabilities Common stock Retained earnings, 12/31/21 Total liabilities and equities (976.600) 597,000 221,000 (136,752) (29,640) (325,000) . (684,000) (325.000) 100.000 $ (1,109,000) $ 79,458 405,050 970,452 140,040 453,000 326,000 256,000 $ 2,630,000 (701,000) (820,000) (1.109,000) $(2,630,000) 1959,060) 370.000 294,500 0 (29,640) $ (225,000) (628,000) (225,000) 96,000 $ (757,000) 264,960 338,000 0 140,040 389,000 204,000 351,000 $ 1,687,000 ( 620,000) (310,000) (257.000) $(1,687,000) $ $ (74,100) (176,000) (74,100) 50,000 (200, 100) B2,250 78,350 0 0 221,000 90,200 18,300 490,100 (140,000) (150,000) (200, 100) (490, 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 Noncontrolling Consolidated Interest Balance HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Workshoot December 31, 2021 Consolidation Entries House Wilson Cuddy Accounts Debit Credit Corporation Company Company Sales and other revenue 976,608 859,880 401,700 Cont of goods sold 597 000 370,000 228,000 221,000 Operating expenses 294,500 99,600 Income of Wilson Company 136,752 Income of Cuddy Company 29,640 29,640 Net Income 325,000 225,000 74.100 Consolidated net income Not Income whrhulable to norcontrolling interest (Wilson) Net Income tributable to trocontrolling interest (Ouddy) Not income tributable to House Corporation Retained Gamings 111121 House Corporation 8.84.000 Wilson Company 628.000 Cundy Company 176,000 Net income 325,000 225.000 74,100 Dividends dedored 0 0 100,000 96.000 757.000 284,900 338,000 50,000 200,00 82.250 78.350 House Corporation Winion Company Caddy Company Retained earrings, 12/31/21 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Wilong Land Goodwill Franchise 1,100,000 29468 405,050 970,452 140,040 453,000 300,000 250.000 140.040 380,000 204,000 351.000 221.000 90.200 18.500 2.630,000 701,000 167.000 620,000 400,100 140,000 $ Utbil Nonouncing Interlin Ouddy Nincontrolling stores in Wilson Norconing interest in subsidiary common Commons Ruined caring Total abis antequios 820.000 1.100.000 2.830,000 310,000 757.000 1687,000 150,000 200,100 490,100 O 0