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		$	147,000							$	94,000
Inventory			235,000								113,000
Buildings & Equipment (net)			283,000								197,000
Investment in Spark Filter Company			261,333
Cost of Goods Sold			168,000								133,000
Depreciation Expense			35,000								25,000
Current Liabilities						$	165,933							$	63,333
Common Stock							193,000								81,000
Retained Earnings							470,000								211,000
Sales							256,667								206,667
Income from Spark Filter Company							43,733
Total		$	1,129,333			$	1,129,333			$	562,000			$	562,000

On January 1, 20X8, Plug's inventory contained filters purchased for $65,000 from Spark Filter, which had produced the filters for $45,000. In 20X8, Spark Filter spent $105,000 to produce additional filters, which it sold to Plug for $151,667. By December 31, 20X8, Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $45,500 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.)

• Record the basic consolidation entry.

Note: Enter debits before credits.

Entry	Accounts	Debit	Credit
1	Common stock	81,000
	Retained earnings	211,000
	Income from Spark Filter Company	43,733
	NCI in NI of Spark Filter
	Investment in Spark Filter Company
	NCI in NA of Spark Filter

• Record the entry to reverse last year's deferral.

Note: Enter debits before credits.

Entry	Accounts	Debit	Credit
2	Investment in Spark Filter Company
	NCI in NA of Spark Filter
	Cost of goods sold

• Record the entry to defer the current year's unrealized profits on inventory transfers.

Note: Enter debits before credits.

Entry	Accounts	Debit	Credit
3	Sales
	Cost of goods sold
	Inventory

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

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