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 Cor$-$ poration 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 Elimi nation I that would result in a deduction because neither firm uses that account exact title. The paragraph by the $"$P$5-30"$ and the chart are needed to solve the two parts