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					$	766,500
Fair value of the 30% noncontrolling interest						328,500
Wilson business fair value					$	1,095,000
Wilson book value						744,000
Excess fair value over book value					$	351,000
Assignments to adjust Wilsons assets to fair value:
To buildings (20-year remaining life)	$	82,000
To equipment (4-year remaining life)		(27,400	)
To franchises (10-year remaining life)		83,000				137,600
To goodwill (indefinite life)					$	213,400

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	Intra-Entity Purchases	Remaining Intra-Entity Inventory End of Year (at transfer price)
2016	$120,000	$40,000
2017	150,000	60,000

On January 1, 2018, 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 $312,800, indicating neither goodwill nor other specific fair-value allocations. Each company put up one-half of the consideration transferred. During 2018, House acquired additional inventory from Wilson at a price of $284,000. Of this merchandise, 45 percent is still held at year-end.

	House Corporation				Wilson Company				Cuddy Company
Sales and other revenues	$	(1,026,720	)		$	(783,400	)		$	(361,800	)
Cost of goods sold		590,000				317,000				195,000
Operating expenses		276,000				274,000				92,800
Income of Wilson Company		(134,680	)			0				0
Income of Cuddy Company		(29,600	)			(29,600	)			0
Net income	$	(325,000	)		$	(222,000	)		$	(74,000	)
Retained earnings, 1/1/18	$	(881,000	)		$	(598,000	)		$	(241,000	)
Net income (above)		(325,000	)			(222,000	)			(74,000	)
Dividends declared		100,000				96,000				50,000
Retained earnings, 12/31/18	$	(1,106,000	)		$	(724,000	)		$	(265,000	)
Cash and receivables	$	22,220			$	219,000			$	88,000
Inventory		428,000				386,000				102,300
Investment in Wilson Company		948,780				0				0
Investment in Cuddy Company		166,000				166,000				0
Buildings		418,000				334,000				216,000
Equipment		314,000				194,000				92,200
Land		274,000				330,000				19,500
Total assets	$	2,571,000			$	1,629,000			$	518,000
Liabilities	$	(645,000	)		$	(595,000	)		$	(103,000	)
Common stock		(820,000	)			(310,000	)			(150,000	)
Retained earnings, 12/31/18		(1,106,000	)			(724,000	)			(265,000	)
Total liabilities and equities	$	(2,571,000	)		$	(1,629,000	)		$	(518,000	)

Note: Parentheses indicate a credit balance.

Using the three companies' following financial records for 2018, prepare a consolidation worksheet. 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. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.)

HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES
Consolidation Worksheet
December 31, 2018
				Consolidation Entries		Noncontrolling	Consolidated
Accounts	House Corporation	Wilson Company	Cuddy Company	Debit	Credit	Interest	Balance
Sales and other revenue	(1,026,720)	(783,400)	(361,800)
Cost of goods sold	590,000	317,000	195,000
Operating expenses	276,000	274,000	92,800
Income of Wilson Company	(134,680)
Income of Cuddy Company	(29,600)	(29,600)
Net income	(325,000)	(222,000)	(74,000)
Consolidated net income							0
Net income attributable to noncontrolling interest (Wilson)
Net income attributable to noncontrolling interest (Cuddy)
Net income attributable to House Corporation							0
Retained earnings, 1/1/18:
House Corporation	(881,000)
Wilson Company		(598,000)
Cuddy Company			(241,000)
Net income	(325,000)	(222,000)	(74,000)
Dividends declared
House Corporation	100,000
Wilson Company		96,000
Cuddy Company			50,000
Retained earnings, 12/31/18	(1,106,000)	(724,000)	(265,000)				0
Cash and receivables	22,220	219,000	88,000
Inventory	428,000	386,000	102,300
Investment in Wilson Company	948,780
Investment in Cuddy Company	166,000	166,000
Buildings	418,000	334,000	216,000
Equipment	314,000	194,000	92,200
Land	274,000	330,000	19,500
Goodwill
Franchise contracts
Total assets	2,571,000	1,629,000	518,000				0
Liabilities	(645,000)	(595,000)	(103,000)
Noncontrolling interest in Cuddy
Noncontrolling interest in Wilson
Noncontrolling interest in subsidiary companies						0
Common stock	(820,000)	(310,000)	(150,000)
Retained earnings (above)	(1,106,000)	(724,000)	(265,000)
Total liabilities and equities	(2,571,000)	(1,629,000)	(518,000)	0	0		0