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 interest 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:

	Clean Air Products								Superior Filter Company
	Debit				Credit				Debit					Credit
Cash and Accounts Receivable		$	148,000							$	94,000
Inventory			221,000								126,000
Buildings & Equipment (net)			275,000								184,000
Investment in Superior Filter Stock			263,200
Cost of Goods Sold			173,000								138,000
Depreciation Expense			35,000								25,000
Current Liabilities						$	163,400							$	60,000
Common Stock							191,000								82,000
Retained Earnings							452,000								211,000
Sales							264,000								214,000
Income from Subsidiary							44,800
Total		$	1,115,200			$	1,115,200			$	567,000			$	567,000

On January 1, 20X8, Clean Air's inventory contained filters purchased for $67,000 from Superior Filter, which had produced the filters for $47,000. In 20X8, Superior Filter spent $107,000 to produce additional filters, which it sold to Clean Air for $157,000. By December 31, 20X8, Clean Air had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $47,100 of the 20X8 purchase from Superior Filter.

Required:

a.

Prepare all consolidation entries needed to complete a consolidation worksheet for 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

*Record the basic consolidation entry.

*Record the entry to reverse last year's deferral.

*Record the entry to defer the current year's unrealized profits on inventory transfers.

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.