Pirate Corporation purchased $100$ percent ownership of Ship Company on January $1,20$X$5,$ for $$270,000.$ On that date, the book value of Ship$$s reported net assets was $$200,000.$ The excess over book value paid is attributable to depreciable assets with a remaining useful life of $10$ years. Net income and dividend payments of Ship in the following periods were as shown below:

Year Net Income Dividends

$20$X$5$ $ $20,000$ $ $5,000$

$20$X$640,00015,000$

$20$X$720,00035,000$

Required:

Prepare journal entries on Pirate Corporation$$s books relating to its investment in Ship Company for each of the three years, assuming it accounts for the investment using the equity method.