On January 2, 2005, the board of directors of Photo Corporation assigned to a voting trust 15,000 shares of the 60,000 shares of Soto Company common stock owned by Photo. The trustee of the voting trust presently has custody of 40,000 of Soto's 105,000 shares of issued common stock, of which 5,000 shares are in Soto's treasury. The term of the voting trust is three years.

 

Instructions

Are consolidated financial statements appropriate for Photo Corporation and Soto Company for the three years ending December 31, 2007? Explain