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% noncontrolling interest Wilson business fair value Wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: 770,000 330,000 1,100,000 751,000 349,000 To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year To goodwill (indefinite life) $ 86,000 (31,200) 55,500 remaining life) 110.300 $ 238,700 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: Intra-Entity Remaining Intra-Entity Inventory- Year 2016 2017 Purchases $131,250 159,375 End of Year (at transfer price) $43,750 63,750 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% noncontrolling interest Wilson business fair value Wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: 770,000 330,000 1,100,000 751,000 349,000 To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year To goodwill (indefinite life) $ 86,000 (31,200) 55,500 remaining life) 110.300 $ 238,700 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: Intra-Entity Remaining Intra-Entity Inventory- Year 2016 2017 Purchases $131,250 159,375 End of Year (at transfer price) $43,750 63,750