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 Fair value of the 30% non controlling interest Wilson business fair value Wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: $875,000 375,000 $ 1,250,000 856,000 $394,000 To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) $ 154,000 (30,400) 72,500 196,100 $ 197,900 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 2016 2017 Intra-Entity Purchases $105,000 137,500 Remaining Intra-Entity Inventory- End of Year (at transfer price) $35,000 55,000 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 Fair value of the 30% non controlling interest Wilson business fair value Wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: $875,000 375,000 $ 1,250,000 856,000 $394,000 To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) $ 154,000 (30,400) 72,500 196,100 $ 197,900 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 2016 2017 Intra-Entity Purchases $105,000 137,500 Remaining Intra-Entity Inventory- End of Year (at transfer price) $35,000 55,000