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 $ 735,000 315,000 Wilson book value Excess fair value over book value To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) $ 1,050,000 747,000 $ 303,000 Assignments to adjust Wilson's assets to fair value: $ 75,000 (37,000) 83,500 $ 121,500 181,500 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 $131,250 159,375 Remaining Intra-Entity Inventory- End of Year (at transfer price) $43,750 63,750 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 $292,000, 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 $283,000. Of this merchandise, 45 percent is still held at year-end. Following are the financial records for the three companies for 2021. 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.) Sales and other revenue Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income Accounts 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 HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2021 Consolidation Entries House Corporation Wilson Company Cuddy Company Debit Credit Noncontrolling Consolidated Interest Balance 976,000 772,000 393,600 613,000 300,000 226,000 253,000 282,000 97,600 133,000 28,000 28,000 271,000 218,000 70,000 868,000 0 0