4110.2

Pistol Corporation purchased 100 percent ownership of Scope Products on January 1, 20X6, for $65,000, at which time Scope Products reported retained earnings of $13,000 and capital stock outstanding of $27,000. The differential was attributable to patents with a life of eight years. Income and dividends of Scope Products were Year Net Income Dividends 20x6 $24,000 20X7 32,000 20x8 40,000 $ 9,000 11,000 11,000 Required: 1. Prepare the equity method entries that Pistol should record to account for this investment in 20X6, 20X7, and 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 123 4 5 6 7 8 9 10 > Record the purchase of Scope Company