The Thames Company is located in London, England. The local currency is the British pound ( \(£\) ).

On January 1, 20X8. Dek Company purchased an 80 percent interest in Thames Company for \(\$ 400,000\), which resulted in an excess of cost-over-book value of \(\$ 48,000\) due solely to a trademark having a remaining life of 10 years. Dek uses the equity method to account for its investment.

Dek's December 31, 20X8, trial balance has been translated into U.S. dollars, requiring a translation adjustment debit of \(\$ 6,400\). Thames Company's net income translated into U.S. dollars is \(\$ 60,000\). Thames declared and paid a \(£ 15,000\) dividend on May 1, 20 X8 .

Relevant exchanges rates are as follows:

\section*{Required}

a. Record the dividend received by Dek Company from The Thames Company.

b. Prepare the entries to record Dek Company's equity in the net income of The Thames Company and the parent's share of the translation adjustment.

c. Show a calculation of the goodwill reported on the consolidated balance sheet of December 31, 20X8, and the translation adjustment from goodwill.

d. Record the amortization of the trademark on Dek's books.

e. Calculate the amount of the translation adjustment reported on the statement of comprehensive income as an element of other comprehensive income.

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January 1. 20X8 Average for 20X8 May 1, 20X8 December 31. 20X8 1 = $1.60 1 = $1.63 1 $1.64 1 = $1.65