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	$ 155,000		$ 105,000
Inventory	235,000		129,000
Buildings and Equipment (net)	273,000		195,000
Investment in Spark Filter Company	264,218
Cost of Goods Sold	172,000		137,000
Depreciation Expense	35,000		25,000
Current Liabilities		$ 147,582		$ 86,182
Common Stock		190,000		80,000
Retained Earnings		471,000		203,000
Sales		271,818		221,818
Income from Spark Filter Company		53,818
Total	$ 1,134,218	$ 1,134,218	$ 591,000	$ 591,000

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.

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

A. Record the basic consolidation entry.

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

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