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
Credit	Debit	Credit	Debit
Cash and Accounts Receivable	$ 159,000		$ 100,000
Inventory	234,000		130,000
Buildings and Equipment (net)	272,000		189,000
Investment in Spark Filter Company	273,818
Cost of Goods Sold	174,000		139,000
Depreciation Expense	45,000		35,000
Current Liabilities		$ 184,782		$ 64,182
Common Stock		195,000		90,000
Retained Earnings		462,000		217,000
Sales		271,818		221,818
Income from Spark Filter Company		44,218
Total	$ 1,157,818	$ 1,157,818	$ 593,000	$ 593,000

On January 1, 20X8, Plug's inventory contained filters purchased for $75,000 from Spark Filter, which had produced the filters for $55,000. In 20X8, Spark Filter spent $115,000 to produce additional filters, which it sold to Plug for $156,818. By December 31, 20X8, Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $47,045 of the 20X8 purchase from Spark Filter.

Required:

Prepare all consolidation entries needed to complete a consolidation worksheet for 20X8.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

• 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.