House Corporation has been operating profitably since its creation in 1959. At the beginning of 2009, House acquired a 70 percent ownership in Wilson Company. At the acquisition date, House prepared the following fair-value allocation schedule:

House regularly buys inventory from Wilson at a markup of 25 percent more than cost. House€™s purchases during 2009 and 2010 and related ending inventory balances follow:

On January 1, 2011, 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 $240,000, indicating neither goodwill nor other specific fair-value allocations. Each company put up one-half of the consideration transferred. During 2011, House acquired additional inventory from Wilson at a price of $200,000. Of this merchandise, 45 percent is still held at year-end.
Using the three companies€™ following financial records for 2011, prepare a consolidation worksheet. The partial equity method based on operational earnings has been applied to eachinvestment.

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Consideration transferred for 70 percent 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: $ 707,000 303,000 $1,010,000 790,000 $ 220,000 To buildings (20-year life) To equipment (4-year life) To franchises (10-year life) To goodwill (indefinite life) 60,000 (20,000) 40,000 80,000 Year 2009 2010 Intra-Entity Purchases $120,000 150,000 Retained Intra-Entity Inventory End of Year (at transfer price) $40,000 60,000