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 706 interest in Wilson Fair value of the sono controlling 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) $ 819,000 351,000 $ 1,170,000 293.000 $ 377.000 $ 153,000 (23,600) 50.000 12. Too $ 197,600 House regularly buys inventory from Wilson et a markup of 25 percent more than cost House's purchases during 2019 and 2020 and related ending inventory balonces follow Intra Entity Memaling Intrantity Inventory Year Purchases End of Year at transfer price) $127,500 542,500 2920 156,250 62,500 2019 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 $312.000, indicating neither goodwill nor other specific fair value allocations. Each company put up one-half of the consideration transferred Duting 2021 House acquired additional inventory from Wilson at a price of $225,000 of this marchandise. 45 percent is still hold of year-end. Following are the financial records for the three companies for 2021 $ Cuddy Company (384,980) 210,000 95,400 House Corporation $ (1,854,860) 571,800 299,000 (98, 140) (31,800) $ (314,080) $ (871,080) (314,000) 100,800 $ (1,085,000) $ 16,210 401,450 939, 540 163,800 439,000 313,000 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 Investiment in Wilson Company Investment in Cuddy Company Buildings Equipment 5 $ Wilson Company $ (789, 200) 371,00 278,000 0 (31 800) $ (172,000) $ (611,000) (172,000) 96,000 5 (687,890) $ 159, 280 418,000 163,800 323,000 209,000 374.000 $1,647,000 5 (650,000) (310,000) (687,000) $ (1,647,000) (29,500) (248,800) (79,500) 60.000 (259,500) 175,250 283,650 $ $ Land $ Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equities $ 169,000 96,300 23,300 527,500 (118,000) (150,000) (259,500) (527,500) $ 2,542,000 $ (637,080) (820,000) (1.085,000) $ (2,542,690) $ 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.) Noncontrolling Consolidated Interest Balance HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2021 Consolidation Entries Accounts House Wilson Cuddy Debit Corporation Credit Company Company Sales and other revenue 1,054060 789 200 384 900 Cost of goods sold 571.000 371.000 210.000 Operating expenses 299,000 278,000 95 400 Income of Wilson Company 98,140 Income of Cuddy Company 31,800 31,800 Net income 314,000 172,000 79,500 Consolidated net income Not income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Not income attributable to House Corporation Retained wings, 1/1/21 House Corporation 871.000 Wilson Company 611 000 Cuddy Company 240,000 Not incomo 314,000 172.000 70.500 Dividends declared House Corporation 100,000 Wilson Company 96,000 Cuddy Company 00.000 1085,000 887.000 Retained earings, 12/31/21 250,500 100,000 96,000 687,000 159,200 418,000 60,000 259,500 75 250 163,650 Dividends declared House Corporation Wilson Company Cuddy Company Retained earnings 12/3121 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buiklings Equipment Land Goodwill Franchise contracts Total assets Labs Noncontrolling interest in Cuddy Non controlling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings Total liabilities and equities 1,085.000 16,210 401 450 939,540 163,800 439,000 313.000 260,000 163,800 323,000 209,000 374000 109.000 90,300 23,300 2,542.000 637 000 1.047.000 650,000 527500 118000 820,000 1,085,000 2,542,000 310,000 687 000 1,647,000 150,000 259 500 527500 0 0