Accounting - Upstream Sales

I would really like someone to explain this problem

So for part a) the correct entries are

Reverse of the deffered gross profit from upstream sales in 20X7

Investment in Superior Filter 16,000

Income from Superior Filter 16,000

Eliminate the deferred gross profit from upstream sales in 20X8

Investment in Superior Filter 16,000

Income from Superior Filter 16,000

Since these are 80%, the upstream sales in 20X7 is 20,000, and the upstream sales in 20X8 is 15,000.

My question is, how do you arrive at those values? If someone could show me, that would be really great. Thank you.

Adjustment to Basic Consolidation Entry
	NCI		Clean Air
Net Income	8,000		32,000
+ Reverse GP deferral (up)	4,000		16,000
- Gross profit deferral (up)	(3,000)		(12,000)
Income to be eliminated	9,000		36,000
-------------------------------------------------------------------------------------
Ending Book Value	70,000		280,000
+ Reverse GP deferral (up)	4,000		16,000
- Gross profit deferral (up)	(3,000)		(12,000)
Adjusted book value	71,000		284,000

P6-22 Eliminations for Upstream Sales Clean Air Products owns 80 percent of the stock of Superior Filter Company, which it acquired at underlying book value on August 30, 20X6. At that date, the fair value of the noncontrolling inter- est was equal to 20 percent of the book value of Superior Filter. Summarized trial balance data for the two companies as of December 31, 20X8, are as follows: Superior Filter Clean Air Products Company Debit Credit Debit Credit Cash and Accounts Receivable 145,000 90,000 220,000 Inventory 110,000 Buildings & Equipment (net) 270,000 180,000 Investment in Superior Filter Stock 268,000 Cost of Goods Sold 175,000 140,000 20,000 Depreciation Expense 30,000 150,000 30,000 Current Liabilities Common Stock 200,000 90,000 472,000 220,000 Retained Earnings 250,000 200,000 Sales Income from Subsidiary 36,000 $1,108,000 $1,108,000 $540,000 $540,000 Tota On January 1, 20X8, Clean Air's inventory contained filters purchased for $60,000 from Superior Filter, which had produced the filters for S40,000. In 20X8, Superior Filter spent $100,000 to produce additional filters, which it sold to Clean Air for $150,000. By December 31, 20X8, Clean Air had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $45,000 of the 20X8 purchase from Superior Filter Required Prepare all consolidation entries needed to complete a consolidation worksheet for 20X8. b. Compute consolidated net income and income assigned to the controlling interest in the 20X8 consolidated income statement. c. Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet as of December 31, 20X8