Plug Products owns 80 percent of the stock of Spark FilterCompany, which it acquired at underlying book value on August 30,20X6. At that date, the fair value of the noncontrolling interestwas equal to 20 percent of the book value of Spark Filter.Summarized trial balance data for the two companies as of December31, 20X8, are as follows:
| | Plug Products | | | Spark Filter Company | |
| Debit | Credit | Debit | | Credit | |
| Cash and Accounts Receivable | | $ | 165,000 | | | | | | | $ | 91,000 | | | | | | |
| Inventory | | | 239,000 | | | | | | | | 117,000 | | | | | | |
| Buildings & Equipment (net) | | | 290,000 | | | | | | | | 183,000 | | | | | | |
| Investment in Spark Filter Company | | | 267,200 | | | | | | | | | | | | | | |
| Cost of Goods Sold | | | 174,000 | | | | | | | | 139,000 | | | | | | |
| Depreciation Expense | | | 45,000 | | | | | | | | 35,000 | | | | | | |
| Current Liabilities | | | | | | $ | 226,171 | | | | | | | $ | 44,571 | | |
| Common Stock | | | | | | | 183,000 | | | | | | | | 86,000 | | |
| Retained Earnings | | | | | | | 452,000 | | | | | | | | 211,000 | | |
| Sales | | | | | | | 273,429 | | | | | | | | 223,429 | | |
| Income from Spark Filter Company | | | | | | | 45,600 | | | | | | | | | | |
| Total | | $ | 1,180,200 | | | $ | 1,180,200 | | | $ | 565,000 | | | $ | 565,000 | | |
|
On January 1, 20X8, Plug's inventory contained filters purchasedfor $76,000 from Spark Filter, which had produced the filters for$56,000. In 20X8, Spark Filter spent $116,000 to produce additionalfilters, which it sold to Plug for $157,429. By December 31, 20X8,Plug had sold all filters that had been on hand January 1, 20X8,but continued to hold in inventory $47,229 of the 20X8 purchasefrom
Plug Products owns 80 percent of the stock of Spark FilterCompany, which it acquired at underlying book value on August 30,20X6. At that date, the fair value of the noncontrolling interestwas equal to 20 percent of the book value of Spark Filter.Summarized trial balance data for the two companies as of December31, 20X8, are as follows:
| | Plug Products | | | Spark Filter Company | |
| Debit | Credit | Debit | | Credit | |
| Cash and Accounts Receivable | | $ | 165,000 | | | | | | | $ | 91,000 | | | | | | |
| Inventory | | | 239,000 | | | | | | | | 117,000 | | | | | | |
| Buildings & Equipment (net) | | | 290,000 | | | | | | | | 183,000 | | | | | | |
| Investment in Spark Filter Company | | | 267,200 | | | | | | | | | | | | | | |
| Cost of Goods Sold | | | 174,000 | | | | | | | | 139,000 | | | | | | |
| Depreciation Expense | | | 45,000 | | | | | | | | 35,000 | | | | | | |
| Current Liabilities | | | | | | $ | 226,171 | | | | | | | $ | 44,571 | | |
| Common Stock | | | | | | | 183,000 | | | | | | | | 86,000 | | |
| Retained Earnings | | | | | | | 452,000 | | | | | | | | 211,000 | | |
| Sales | | | | | | | 273,429 | | | | | | | | 223,429 | | |
| Income from Spark Filter Company | | | | | | | 45,600 | | | | | | | | | | |
| Total | | $ | 1,180,200 | | | $ | 1,180,200 | | | $ | 565,000 | | | $ | 565,000 | | |
|
On January 1, 20X8, Plug's inventory contained filters purchasedfor $76,000 from Spark Filter, which had produced the filters for$56,000. In 20X8, Spark Filter spent $116,000 to produce additionalfilters, which it sold to Plug for $157,429. By December 31, 20X8,Plug had sold all filters that had been on hand January 1, 20X8,but continued to hold in inventory $47,229 of the 20X8 purchasefrom Spark Filter.
Required:
a. Prepare all consolidation entries needed to complete aconsolidation worksheet for 20X8. (If no entry is requiredfor a transaction/event, select "No journal entry required" in thefirst account field.)
b. Compute consolidated net income and income assigned to thecontrolling interest in the 20X8 consolidated incomestatement.
c. Compute the balance assigned to the noncontrolling interestin the consolidated balance sheet as of December 31, 20X8.
