House Corporation has been operating profitably since its creation in 1960. At the beginning of 2019, House acquired a 7

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House Corporation has been operating profitably since itscreation in 1960. At the beginning of 2019, House acquired a 70percent ownership in Wilson Company. At the acquisition date, Houseprepared the following fair-value allocation schedule:
House regularly buys inventory from Wilson at a markup of 25percent more than cost. House's purchases during 2019 and 2020 andrelated ending inventory balances follow:
On January 1, 2021, House and Wilson acted together asco-acquirers of 80 percent of Cuddy Company's outstanding commonstock. The total price of these shares was $291,200, indicatingneither goodwill nor other specific fair-value allocations. Eachcompany put up one-half of the consideration transferred. During2021, House acquired additional inventory from Wilson at a price of$275,000. Of this merchandise, 45 percent is still held atyear-end. Following are the financial records for the threecompanies for 2021.