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) 777,000 333,000 1,110,000 865,000 245,000 $ $ 61,000 (23,800) 56,000 93,200 151,800 $ 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 $101.250 134.375 Remaining Intra-Entity Inventory- End of Year (at transfer price) $33.750 53,750 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 $292,800, 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 $234,000. Of this merchandise, 45 percent is still held at year-end. Following are the financial records for the three companies for 2021. $ $ House Corporation (949,472) 565,000 287,000 1124 768) Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Camnany $ Wilson Company (820,740) 366,000 276,500 n Cuddy Company (324,200) 155,000 92,300 n Reading $ $ $ $ $ $ $ $ $ $ House Corporation (949,472) 565,000 287,000 (124,768) (30,760) (253,000) (822,000) (253,000) 100,000 (975,000) 19,272 405,500 915,068 153, 160 414,000 313,000 238,000 2.458,000 (663,000) (820,000) (975,000) (2,458,000) 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 $ Wilson Company (820,740) 366,000 276,500 0 (30,760) (209,000) (670,000 (209,000) 96,000 (783,000) 374,840 373,000 0 153,160 344,000 149,000 340,000 1,734,000 (641,000) (310,000) (783,000) (1,734,000) $ $ Cuddy Company (324,200) 155,000 92,300 0 0 (76,900) (216,000) (76,900) 60,000 (232,900) 83,250 193,350 0 0 162,000 89,400 16,900 544,900 (162,000) (150,000) (232,900) (544,900) $ $ $ $ $ $ $ $ $ $ $ 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 Sales and other revenue Wilson Company 820,740 366.000 Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company House Corporation 949,472 565,000 287,000 124,768 30,760 253,000 Cuddy Company 324,200 155,000 92,300 276,500 Net income 30,760 209,000 76,900 0 0 822,000 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: House Corporation Wilson Company Cuddy Company Net income Dividends declared House Corporation Wilson Company Cuddy Company 670,000 216,000 76,900 253,000 209,000 100,000 96,000 60,000 216.000 253,000 209,000 76,900 100,000 96,000 Cuddy Company Net income 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 0 783,000 374,840 373,000 60,000 232,900 83,250 193,350 975,000 19,272 405,500 915,068 153,160 414,000 313,000 238,000 153,160 344,000 162,000 89,400 149,000 340,000 16.900 Goodwill Franchise contracts Total assets 1.734.000 544,900 0 2,458,000 663,000 641,000 162,000 Liabilities Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings Total liabilities and equities 0 820,000 975,000 2,458,000 310,000 783,000 1,734,000 150,000 232,900 544,900 0 0 0 907