Pawn Corporation purchased $30$ percent of Shop Company$$s common stock on January $1,20$X$5,$ by issuing preferred stock with a par value of $$50,000$ and a market price of $$120,000.$ The following amounts relate to Shop's balance sheet items at that date:

Book Value Fair Value

Assets

Cash & Receivables $ $200,000$ $ $200,000$

Buildings & Equipment $400,000360,000$

Less: Accumulated Depreciation $(100,000)$

Total Assets $ $500,000$

Liabilities & Equities

Accounts Payable $ $50,00050,000$

Bonds Payable $200,000200,000$

Common Stock $100,000$

Retained Earnings $150,000$

Total Liabilities & Equities $ $500,000$

Shop purchased buildings and equipment on January $1,20$X$0,$ with an expected economic life of $20$ years. No change in overall expected economic life occurred as a result of the acquisition of Pawn's stock. The amount paid in excess of the fair value of Shop's reported net assets is attributed to unrecorded copyrights with a remaining useful life of eight years. During $20$X$5,$ Shop reported net income of $$40,000$ and paid dividends of $$10,000.$

Required:

Prepare all journal entries to be recorded on Pawn Corporation$$s books during $20$X$5,$ assuming it uses the equity method in accounting for its ownership of Shop Company.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.