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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.

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 $ 777,000
Fair value of the 30% noncontrolling interest 333,000
Wilson business fair value $ 1,110,000
Wilson book value 865,000
Excess fair value over book value $ 245,000
Assignments to adjust Wilsons assets to fair value:
To buildings (20-year remaining life) $ 61,000
To equipment (4-year remaining life) (23,800 )
To franchises (10-year remaining life) 56,000 93,200
To goodwill (indefinite life) $ 151,800

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 $101,250 $33,750
2017 134,375 53,750

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 $292,800, 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 $234,000. Of this merchandise, 45 percent is still held at year-end.

House Corporation Wilson Company Cuddy Company
Sales and other revenues $ (949,472 ) $ (820,740 ) $ (324,200 )
Cost of goods sold 565,000 366,000 155,000
Operating expenses 287,000 276,500 92,300
Income of Wilson Company (124,768 ) 0 0
Income of Cuddy Company (30,760 ) (30,760 ) 0
Net income $ (253,000 ) $ (209,000 ) $ (76,900 )
Retained earnings, 1/1/18 $ (822,000 ) $ (670,000 ) $ (216,000 )
Net income (above) (253,000 ) (209,000 ) (76,900 )
Dividends declared 100,000 96,000 60,000
Retained earnings, 12/31/18 $ (975,000 ) $ (783,000 ) $ (232,900 )
Cash and receivables $ 19,272 $ 374,840 $ 83,250
Inventory 405,500 373,000 193,350
Investment in Wilson Company 915,068 0 0
Investment in Cuddy Company 153,160 153,160 0
Buildings 414,000 344,000 162,000
Equipment 313,000 149,000 89,400
Land 238,000 340,000 16,900
Total assets $ 2,458,000 $ 1,734,000 $ 544,900
Liabilities $ (663,000 ) $ (641,000 ) $ (162,000 )
Common stock (820,000 ) (310,000 ) (150,000 )
Retained earnings, 12/31/18 (975,000 ) (783,000 ) (232,900 )
Total liabilities and equities $ (2,458,000 ) $ (1,734,000 ) $ (544,900 )

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.)

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