Plug Corporation acquired 35 percent of Spark Corporation's stock on January 1, 20X8, by issuing 25,000 shares of its $2 par value common stock. Spark Corporation's balance sheet immediately before the acquisition contained the following items:

P5-26 Equity Entries with Differential LO 5-1 Plug Corporation acquired 35 percent of Spark Corporation's stock on January 1, 20X8, by issuing 25,000 shares of its $2 par value common stock. Spark Corporation's balance sheet immediately before the acquisition contained the following items: SPARK CORPORATION Balance Sheet January 1, 20X8 Book Value Fair Value Assets Cash & Receivables $ 40,000 $ 40,000 Inventory (FIFO basis) 80,000 100,000 Land 50,000 70,000 Buildings & Equipment (net) 240,000 320,000 Total Assets $410,000 $530,000 Liabilities & Equities Accounts Payable $ 70,000 $ 70,000 Common Stock 130,000 Retained Earnings 210,000 Total Liabilities & Equities $410,000 Shares of Plug were selling at $8 at the time of the acquisition. On the date of acquisition, the remaining economic life of buildings and equipment held by Spark was 20 years. The amount of the differential assigned to goodwill is not impaired. For the year 20X8, Spark reported net income of $70,000 and paid dividends of $10,000. Required a. Give the journal entries recorded by Plug Corporation during 20X8 related to its investment in Spark Corporation. b. What balance will Plug report as its investment in Spark at December 31, 20X8