Pistol Corporation purchased $100$ percent ownership of Scope Products on January $1,20$X$6,$ for $$56,000,$ at which time Scope Products reported retained earnings of $$10,000$ and capital stock outstanding of $$30,000.$ The differential was attributable to patents with a life of eight years. Income and dividends of Scope Products were:

Year Net Income Dividends

$20$X$6$ $ $16,000$ $ $6,000$

$20$X$724,0008,000$

$20$X$832,0008,000$

Required:

Prepare the equity$-$method entries that Pistol should record to account for this investment in $20$X$6,20$X$7,$ and $20$X$8.$

What is the balance of the Investment in Scope account on Pistol's balance sheet at December $31,20$X$8,$ after all required equity$-$method entries have been recorded?