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Photo Corporation acquired 75 percent of Shutter Corporation's voting common stock on January 1, 20X2,...

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Accounting

image Photo Corporation acquired 75 percent of Shutter Corporation's voting common stock on January 1, 20X2, at underlyling book value. At the acquisition date, the book values and falr values of Shutter's assets and Ilabilitles were equal, and the falr value of the noncontrolling Interest was equal to 25 percent of the total book value of Shutter. Noncontrolling Interest was assigned Income of $8,000 In Photo's consolidated Income statement for 202 and a balance of $65,500 in Photo's consolidated balance sheet at December 31,202. Shutter reported retalned earnings of $70,000 and addlitional pald-In capital of $40,000 on January 1,202 Shutter did not pay dividends or issue stock in 202. Requlred: a. Compute the amount of net Income reported by Shutter for 202 b. Prepare the stockholders' equity section of Shutter's balance sheet at December 31,202

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