Plug Corporation acquired 35 percent of Spark Corporations stock on January 1, 20X8, by issuing 25,000 shares of its $2 par value common stock. Spark Corporations 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 100000

Land 50,000 70000

Buildings & Equipment (net) 240,000 320000

Total Assets $410,000 530000

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

Give the journal entries recorded by Plug Corporation's investment at 1/1/2018.

Give the journal entries recorded investment income at 12/31/18