Problem
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.
Task
i. Do all consolidation entries needed to complete a consolidation worksheet for 20X8
ii. Calculate the consolidated net income and income assigned to the controlling interest in the 20X8 consolidated income statement.
iii. Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet as of December 31, 20X8