Photo Industries has owned $80$ percent of Shutter Corporation for many years. On January $1,20$X$6,$ Photo paid Shutter $$252,000$ to acquire equipment that Shutter had purchased on January $1,20$X$3,$ for $$273,000.$ The equipment is expected to have no scrap value and is depreciated over a $15-$year useful life.

Photo reported operating earnings of $$100,000$ for $20$X$8$ and paid dividends of $$40,000.$ Shutter reported net income of $$43,000$ and paid dividends of $$24,000$ in $20$X$8.$

Note: Leave no cell blank, enter $"0"$ wherever required.

Required:

Compute the amount reported as consolidated net income for $20$X$8.$

Prepare the consolidation entry or entries required to eliminate the effects of the intercompany sale of equipment in preparing a full set of consolidated financial statements at December $31,20$X$8.$Photo Industries has owned $80$ percent of Shutter Corporation for many years. On January $1,20$X$6,$ Photo pald Shutter $$252,000$ to

acquire equipment that Shutter had purchased on January $1,203,$ for $$273,000.$ The equipment is expected to have no scrap value

and is depreclated over a $15-$year useful life.

Photo reported operating earnings of $$100,000$ for $208$ and pald dividends of $$40,000.$ Shutter reported net Income of $$43,000$ and

pald dividends of $$24,000$ in $208.$

Note: Leave no cell blank, enter $"0"$ wherever required.

Required:

a$.$ Compute the amount reported as consolidated net income for $208.$

Consolidated net income

b$.$ By what amount would consolidated net income change if the equipment sale had been a downstream sale rather than an

upstream sale?

Answer is complete and correct.

$\backslash$table$[[$Net income change,$$,0$