House Corporation has been operating profitably since its creation in 1959. At the beginning of 2011, 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 2011 and 2012 and related ending inventory balances follow:
................................................ Remaining Intra-Entity
....................... Intra-Entity .......... Inventory-End of Year
Year ................. Purchases ................ (At transfer price)
2011 ................. $120,000 ...................... $40,000
2012 ................. 150,000 ........................ 60,000
On January 1, 2013, 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 2013, 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 2013, prepare a consolidation worksheet. The partial equity method based on operating income has been applied to each investment.

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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 707,000 303,000 S1,010,000 790,000 S 220,000 Excess fair value over book value Assignments to adjust Wilson's assets to fair value To buildings (20-year life) To equipment (4-year life) To franchises (10-year life). To goodwill (indefinite life) 60,000 (20,000) 40,000 800 140,000 Cuddy Company House Wilson orpo ration Company Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company (900,000) (700,000 (300,000) 140,000 90,000 551,000 219,000 (91,000) 28,000)26,000 300,000 270,000 (70,000) S (820,000) $ (590,000) (150,000) Net income 249,000) (158,000) Retained earnings, 1/1/13 Net income (above) Dividends paid 158,000) (70,000) 50,000 (969,000) (652,000) $(170,000) 220,000 $ 334,000 67,000 103,000 100,000 96,000 Retained earnings, 12/31/13 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land 390,200 807,800 128,000 385,000 310,000 180,000 320,000 128,000 320,000 130,000 300,000 144,000 88,000 16,000 2,421,000 1,532,000 418,000 (632,000) $ (570,000) 98,000) (310,000) (150,000) (969,000) (652,000 170,000) $(2,42 1,000 $(15 00),) Total assets Liabilities. Common stock Retained earnings, 12/31/13 (820,000) Total liabilities and equities - -