House Corporation has been operating profitably since its creation in 1960. At the beginning of 2019, 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 2019 and 2020 and related ending inventory balances follow:

On January 1, 2021, 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 2021, 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 2021, prepare a consolidation worksheet. The partial equity method based on separate company incomes has been applied to each investment.

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Consideration transferred for 70% interest in Wilson.... Fair value of the 30% noncontrolling interest Wilson business fair value..... Wilson book value .. $ 707,000 303,000 $1,010,000 790,000 $ 220,000 Excess fair value over book value.. Assignments to adjust Wilson's assets to fair value: To buildings (20-year remaining life).. To equipment (4-year remaining life) To franchises (10-year remaining life). $60,000 (20,000) 80,000 $ 140,000 40,000 To goodwill (indefinite life) ..