Clean Air Products owns 80 percent of the stock of Superior 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 Superior Filter. Summarized trial balance data for the two companies as of December 31, 20X8, are as follows:

On January 1, 20X8, Clean Air’s inventory contained filters purchased for $60,000 from Superior Filter, which had produced the filters for $40,000. In 20X8, Superior Filter spent $100,000 to produce additional filters, which it sold to Clean Air for $150,000. By December 31, 20X8, Clean Air had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $45,000 of the 20X8 purchase from Superior Filter.

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

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Clean Air Products Superior Filter Company Debit Credit Debit Credit 145,000 220,000 270,000 268,000 175,000 $90,000 110,000 180,000 Cash and Accounts Receivable Inventory Buildings & Equipment (net) Investment in Superior Filter Stock Cost of Goods Sold Depreciation Expense Current Liabilities Common Stock Retained Earnings Sales Income from Subsidiary Total 140,000 20,000 30,000 30,000 90,000 220,000 200,000 36,000_ $1,108,000 $1,108,000 $540,000 $540,000 S 150,000 200,000 472,000 250,000