Assume Photo Corporation purchased $55$ percent of the outstanding stock of Shutter Company $($i$.$e$.,$

replace $75$ percent with $55$ percent in the first line of the problem$).$ Also assume that Photo Corporation paid $$385,000$ cash for the stock instead of issuing $$500,000$ par bonds payable. On that date,

the buildings and equipment have a remaining life of $10$ years, the patent has a remaining life of $5$ years,

and the fair value of noncontrolling interest is $$315,000.$

During $20$X$8,$ Shutter Company reported net income of $$170,000$ and paid dividends of $$60,000.$ On December $31,20$X$8,$ Shutter Corporation owed $$9,000$ on account to Photo Corporation and calculated

that $$15,000$ of goodwill had been impaired.

Part $1$: Journalize the equity method entries to record the investment on the books of Photo

Corporation during $20$X$8.$

Part $2$: Journalize the elimination entries that would need to be prepared by Photo Corporation

to report consolidated financial statements on December $31,20$X$8.$ Hint: make sure you use the

same account titles used by the two firms. For example, if you use Accounts Receivable in Elimination I that would result in a deduction because neither firm uses that account exact title The attached photo refers to the information in the chart as welll as the above paragraph that is needed to solve part $1$ and part $2$