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:

		Plug Products								Spark Filter Company
	Debit				Credit				Debit					Credit
Cash and Accounts Receivable		$	160,000							$	95,000
Inventory			232,000								121,000
Buildings & Equipment (net)			272,000								193,000
Investment in Spark Filter Company			267,628
Cost of Goods Sold			166,000								131,000
Depreciation Expense			40,000								30,000
Current Liabilities						$	186,893							$	60,093
Common Stock							187,000								88,000
Retained Earnings							471,000								218,000
Sales							253,907								203,907
Income from Spark Filter Company							38,828
Total		$	1,137,628			$	1,137,628			$	570,000			$	570,000

On January 1, 20X8, Plug's inventory contained filters purchased for $63,000 from Spark Filter, which had produced the filters for $43,000. In 20X8, Spark Filter spent $103,000 to produce additional filters, which it sold to Plug for $150,907. By December 31, 20X8, Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $45,272 of the 20X8 purchase from Spark 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.)

Consolidation Worksheet Entries

• 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.

Note: Enter debits before credits.

Entry	Accounts	Debit	Credit
1

b. Compute consolidated net income and income assigned to the controlling interest in the 20X8 consolidated income statement.

Consolidated net income

Income assigned to the controlling interest

c. Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet as of December 31, 20X8.

	Noncontrolling interest