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 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: $777,000 333.000 1,110,000 865, 000 $ 245,000 To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) $ 61,000 (23, 800) 56,000 93,200 151,800 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: Intra-Entity Remaining Intra-Entity Inventory- Year Purchases 2016 $101,250 2017 End of Year (at transfer price) 33,750 53,750 134,375 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. Cuddy Wilsorn Company (820,740 366,000 276,500 House Corporation (949,472) 565, 000 287,000 (124,768) 30,760 Company $(324,200) 155,000 92,300 Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income (30,760 (209,000) (253,000) $(76,900 Retained earnings, 1/1/18 Net income (above) Dividends declared $(822,000) (670,000 (216,000) (76,900) 60,000 (253, 000) 100,000 (209,000) 96,000 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 $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 Wilson Cuddy Company (324,200) 155,000 House Corporation (949,472) 565, 000 287,000 (124,768) (30,760) Company (820,740) 366,000 276,500 Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income 92,300 30,760 $ (209,000) (253,000) $ (822,000) (76,900) (670,000) (209,000) Retained earnings, 1/1/18 Net income (above) Dividends declared $(216,000) (76,900) 60,000 (253,000) 100, 000 96,000 $ (783,000) $374,840 373,000 (975,000) $ (232,900) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Investment in Cuddy Compan Buildings Equipment 83,250 193,350 405,500 915,068 153,160 414,000 313,000 238,000 153,160 344,000 149,000 340,000 162,000 89,400 16,900 $544,900 2,458,00o34 000 (641,000) Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equities $ (663,000) (820,000) 975,000) $ (2,458,000) (162,000) (150,000) (232,900) $ (544,900) (310,000) 783,000 (1,734,000) HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries Noncontrolling Consolidated Cuddy Compan Wilson House Corporation Company Debit Accounts Credit Interest Balance (949,472) (820,740) (324,200) 366,000 276,500 Sales and other revenu Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company 565,000 287,000 (124,768) 155,000 92,300 760)(30,760) (253,000) (209,000)(76,900) Net income 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, 1/1/18 0 0 House Corporation Wilson Company Cuddy Company (822,000) (670,000) (216,000) (253,000) 209,000)(76,900) Net income Dividends declared House Corporation 100,000 Wilson Company 96,000 Cuddy Company Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildinas 60,000 (975,000) 783,000)(232,900) 83,250 193,350 0 19,272 405,500 915,068 153,160 414.000 374,840 373,000 153,160 344.000 162.000 Buildings Equipment Land Goodwill Franchise contracts Total assets Liabilities Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings (above) Tntal liahlitie and itiae 414,000 313,000 238,000 344,000 149,000 340,000 162,000 89,400 16,900 2,458,000 1,734,000 544,900 (663,000) 641,000) 162,000) (820,000) (310,000) (150,000) (975,000) (783,000)(232,900) 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: $777,000 333.000 1,110,000 865, 000 $ 245,000 To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) $ 61,000 (23, 800) 56,000 93,200 151,800 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: Intra-Entity Remaining Intra-Entity Inventory- Year Purchases 2016 $101,250 2017 End of Year (at transfer price) 33,750 53,750 134,375 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. Cuddy Wilsorn Company (820,740 366,000 276,500 House Corporation (949,472) 565, 000 287,000 (124,768) 30,760 Company $(324,200) 155,000 92,300 Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income (30,760 (209,000) (253,000) $(76,900 Retained earnings, 1/1/18 Net income (above) Dividends declared $(822,000) (670,000 (216,000) (76,900) 60,000 (253, 000) 100,000 (209,000) 96,000 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 $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 Wilson Cuddy Company (324,200) 155,000 House Corporation (949,472) 565, 000 287,000 (124,768) (30,760) Company (820,740) 366,000 276,500 Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income 92,300 30,760 $ (209,000) (253,000) $ (822,000) (76,900) (670,000) (209,000) Retained earnings, 1/1/18 Net income (above) Dividends declared $(216,000) (76,900) 60,000 (253,000) 100, 000 96,000 $ (783,000) $374,840 373,000 (975,000) $ (232,900) Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Investment in Cuddy Compan Buildings Equipment 83,250 193,350 405,500 915,068 153,160 414,000 313,000 238,000 153,160 344,000 149,000 340,000 162,000 89,400 16,900 $544,900 2,458,00o34 000 (641,000) Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equities $ (663,000) (820,000) 975,000) $ (2,458,000) (162,000) (150,000) (232,900) $ (544,900) (310,000) 783,000 (1,734,000) HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries Noncontrolling Consolidated Cuddy Compan Wilson House Corporation Company Debit Accounts Credit Interest Balance (949,472) (820,740) (324,200) 366,000 276,500 Sales and other revenu Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company 565,000 287,000 (124,768) 155,000 92,300 760)(30,760) (253,000) (209,000)(76,900) Net income 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, 1/1/18 0 0 House Corporation Wilson Company Cuddy Company (822,000) (670,000) (216,000) (253,000) 209,000)(76,900) Net income Dividends declared House Corporation 100,000 Wilson Company 96,000 Cuddy Company Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildinas 60,000 (975,000) 783,000)(232,900) 83,250 193,350 0 19,272 405,500 915,068 153,160 414.000 374,840 373,000 153,160 344.000 162.000 Buildings Equipment Land Goodwill Franchise contracts Total assets Liabilities Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings (above) Tntal liahlitie and itiae 414,000 313,000 238,000 344,000 149,000 340,000 162,000 89,400 16,900 2,458,000 1,734,000 544,900 (663,000) 641,000) 162,000) (820,000) (310,000) (150,000) (975,000) (783,000)(232,900)