Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 30

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 each investment.