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 12/31/X8 are as follows:

On 01/01/X8, Plug's inventory contained filters purchased for $60,000 from Spark Filter, which had produced the filters for $40,000. In 20X8, Spark Filter spent $100,000 to produce additional filters, which it sold to Plug for $150,000. By 12/31/X8, Plug has sold all filters that had been on hand 01/01/X8, but continued to hold in inventory $45,000 of the 20X8 purchase from Spark Filter.

Requirements: 1. Prepare all equity method entries on Plug's books 2. Prepare all consolidation entries needed 3. Compute consolidated net income and income assigned to controlling interest in the 20X8 consolidated income statement 4. Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet of 12/31/20X8

Spark Filter Company Debit Credit 90,000 110,000 180,000 Plug Products Debit Credit 145,000 220,000 270,000 268,000 175,000 30,000 150,000 200,000 472,000 250,000 36,000 1,108,000 1,108,000 Cash and Accounts Receivable Inventory Buildings & Equipment (net) Investment in Spark Filter Company Cost of Goods Sold Depreciation Expense Current Liabilities Common Stock Retained Earnings Sales Income from Spark Filter Company Total 140,000 20,000 30,000 90,000 220,000 200,000 540,000 540,000 Spark Filter Company Debit Credit 90,000 110,000 180,000 Plug Products Debit Credit 145,000 220,000 270,000 268,000 175,000 30,000 150,000 200,000 472,000 250,000 36,000 1,108,000 1,108,000 Cash and Accounts Receivable Inventory Buildings & Equipment (net) Investment in Spark Filter Company Cost of Goods Sold Depreciation Expense Current Liabilities Common Stock Retained Earnings Sales Income from Spark Filter Company Total 140,000 20,000 30,000 90,000 220,000 200,000 540,000 540,000