Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 18

House Corporation has been operating profitably since its creation in 1960. At the beginning of 2012, House acquired a 70 percent ownership in Wilson Company. At the acquisition date, House prepared the following fair-value allocation schedule:

On January 1, 2014, 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 2014, 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 2014, prepare a consolidation worksheet. The partial equity method based on separate company incomes has been applied to each investment.