Problem 5-30 (Static) Balance Sheet Consolidation of Majority-Owned Subsidiary LO 5-2\ On January 2, 20X8, Photo Corporation acquired 75 percent of Shutter Companys outstanding common stock. In exchange for Shutters stock, Photo issued bonds payable with a par value of $500,000 and fair value of $510,000 directly to the selling stockholders of Shutter. At that date, the fair value of the noncontrolling interest was $170,000. The two companies continued to operate as separate entities subsequent to the combination.\ \ Immediately prior to the combination, the book values and fair values of the companies assets and liabilities were as follows:\ \ Photo Corporation Shutter Company\ Book Value Fair Value Book Value Fair Value\ Assets \ Cash $ 12,000 $ 12,000 $ 9,000 9,000\ Receivables 41,000 39,000 31,000 30,000\ Allowance for Bad Debts (2,000) (1,000) \ Inventory 86,000 89,000 68,000 72,000\ Land 55,000 200,000 50,000 70,000\ Buildings & Equipment 960,000 650,000 670,000 500,000\ Accumulated Depreciation (411,000) (220,000) \ Patent 40,000\ Total Assets $ 741,000 $ 990,000 $ 607,000 721,000\ Liabilities & Equity \ Current Payables $ 38,000 $ 38,000 $ 29,000 29,000\ Bonds Payable 200,000 210,000 100,000 100,000\ Common Stock 300,000 200,000 \ Additional Paid-in Capital 100,000 130,000 \ Retained Earnings 103,000 148,000 \ Total Liabilities & Equity $ 741,000 $ 607,000 \ At the date of combination, Shutter owed Photo $6,000 plus accrued interest of $500 on a short-term note. Both companies have properly recorded these amounts.\ \ Required:\ Record the business combination on the books of Photo Corporation.\ Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.\ \ \ \ Prepare all consolidation entries needed in a worksheet to prepare a consolidated balance sheet immediately following the business combination on January 2, 20X8.\ Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.\ \