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:

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:

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 $240,000, 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 $200,000. Of this merchandise, 45 percent is still held at year-end.
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.

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707,000 303,000 $1,010,000 790,000 $ 220,00o consideration transferred for 70% interest in Wilson. . . . . Fair value of the 30% noncontrolling interest Wilson book value Excess fair value over book value......... . . . . . . Assignments to adjust Wilson's assets to falr value: $60,000 To equipment (4-year remaining life) To franchises (10-year remaining life). To goodwill (Indefinite life) 0,0 $140,000 Year 2016 2017 Intra-Entity Purchases $120,000 150,000 Remaining Intra-Entity Inventory-End of Year (at transfer price) $40,000 60,000 wilson Company Cuddy House Corporation Company Sales and other revenues Cost of goods sold Operating expenses $ (900,000) (700,000) $(300,000) 140,000 551,000 219,000 (91,000) (28.000) 300,000 270,000 SO)) Income of Cuddy Company (28.000 $ (249,000 158000 70000 $(820,000) (590,000) $150,000) (70,000) Net income Retained earnings, 1/1/18 Net income (above) (249,000) (158,000 100,000 96,000 $ (969,000) $ (652,000) (170,000) Retalned earnings, 12/31/18 Cash and recelvables $ 220,000 334,000 67,000 103,000 390,200 807,800 128,000 385,000 310,000 180,000 320,000 Investment in Wiltson Company 0 0 Investment in Cuddy Company Buldings Equipment Land 128,000 320,000 130,000 300,000 144,000 88,000 16,00) Total assets Llabilities Common stock Retained earnings, 12/31/18 $(632,000) (570,000) (98,000) (310,000) (150,000 ー1969,000 652,000 (170,000 (820,000) Total llablities and equities $(2,421.000) (1,532,000 $418,000)