Plug Products owns 80 percent of the stock of Spark 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 Spark Filter. Summarized trial balance data for the two companies as of December 31, 20X8, are as follows: Cash and Accounts Receivable Inventory Buildings and Equipment (net) Investment in Spark Filter Company Cost of Goods Sold Depreciation Expense Current Liabilities Common Stock Retained Earnings Sales Plug Products Credit Debit $ 148,000 222,000 285,000 259,040 171,000 35,000 Debit Spark Filter Company Credit $ 104,000 129,000 186,000 136,000 25,000 $ 171,200 185,000 $ 82,000 81,000 452,000 264,000 47,840 203,000 214,000 $ 580,000 $ 580,000 Income from Spark Filter Company Total $ 1,120,040 $ 1,120,040 On January 1, 20X8, Plug's inventory contained filters purchased for $70,000 from Spark Filter, which had produced the filters for $50,000. In 20X8, Spark Filter spent $110,000 to produce additional filters, which it sold to Plug for $154,000. By December 31, 20X8, Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $46,200 of the 20X8 purchase from Spark Filter.