Tor 7 Homework It 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: $ 766,500 320.500 $1,095,000 816.000 Consideration transferred for 701 Interest in Wilson Fair value of the 308 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: To buildings (26-year remaining life) To equipment id-year remaining life) To franchises (10-year remaining lite) To goodwill findefinite life) ok . $ 63,000 (21,200) 69.000 110,000 $ 168,200 mees 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 Tnventory Tear Purchase End of Year at transfer price) 2016 $127.500 $42,500 2017 156,250 62,500 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 $240.800, 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 $229,000. Of this merchandise, 45 percent is still held at year-end. House wilson Caddy Corporation Company Company Sales and other revenues $(1,004,776) $($32,420) $ (397,700) Cost of goods sold 589,000 358,000 221,000 Operating expenses 279.000 298,500 99,000 Income of Wilson Company (123, 144) 0 Income of Caddy Company (31,080) 21.080) Net Income (291,000) $ (207,000) $ (77.700) Retained earnings, 1/1/18 $ (895,000) $ 47,000) $ 151,000) Net Income (above) (291,000) (207.000) (77,700) Dividends declared 100.000 95.000 60,000 Retained earnings, 12/31/18 5(1,086,000) $(738.000) 3 (168.700) Cash and receivables $ 57,126 301,520 $ 78.250 Inventory 403,250 393,000 Investment in wilson Company 89,450 921,144 0 Investment in Cuddy Company 127,480 127, 480 Buildings 475,000 Equipment 362,000 202.000 374,000 174,000 Land 89.400 230.000 315.000 25.600 Total assets $ 2,596,000 $ 1.673,000 $ 484,700 Liabilities S (690,000) 3 Con stock (605,000) (166,000) (820,000) Retained earnings, 12/31/18 (310,000) (150,000) 11.985.000 250.000) 268,700) Total liabilities and equities $12.596.000) 5(1.673.000) 5 (484,700) NCBOOK Pro SC 80 ODD 000 omework Saved Cuddy HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries Noncontrolling Consolidatec House Wilson Accounts Debit Interest Corporation Company Credit Balance Company Sales and other revenue (1.004,776) (832,420) (397.700)| Cost of goods sold 589,000 358,000 221,000 Operating expenses 279.000 298.500 99.000 Income of Wison Company (123,144) Income of Cuddy Company (31,080) (31.080) Net income (291.000) (207.000) (77,700) Consolidated net income Net income attributable to controlling interest (Wilson) Net Income butable to noncontrolling interest (Cuddy) Net Income atributable to House Corporation Retained earnings. 1/1/18 House Corporation (895,000 Wilson Company (647.000) Cuddy Company (151,000) Net income (291.000) (207.000) (77.700) Dividends declared House Corporation 100,000 Wilson Company 90.000 Cuddy Company 60.000 Retained earings, 12/31/18 (1,086,000) (750.000) (168.7000 Cash and receivables 57,128 301,520 78.250 Inventory 403.250 393.000 89,450 Investment in Wilson Company 921144 Investment in Cuddy Company 127.480 127 480 Buildings 475,000 362.000 202,000 Equipment 374,000 174.000 89.400 Land 238.000 315.000 25.600 Goodwie Franchise contracts Total assets 2.500.000 1.673 000 484,700 0 Labetes (890.000) 1605,000) (166.000) Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock (820.000) 310.000 (150.000) Retained earnings above (1.086,000) (758,000) (168,7003 To abits and equities 12.590.000) (1,673.000) 4484.700) o w MacBook Pro