Pistol Corporation purchased 100% ownership of Scope Products on January 1, 20X6, for $63,000, at which time scope Products reported retained earnings of $13,000 and capital stock outstanding of $25,000. The differential was attributable to patents with a life of 8 years. Income and dividends of Scope Products were: for Year 20X6 net income of $20,000 and dividends of $6,000; for Year 20X7 net income of $28,000 and dividends of $8,000; and Year 20X8 net income of $36,000 and dividends of $8,000.

Prepare the equity method entries that Pistol should record to account for this investment in 20X6, 20X7, and 20X8.

a. Record the purchase of Scope Company.

b. Record the dividend from Scope Company for 20X6.

c. Record the equity-method income/loss for 20X6.

d. Record the amortization of the differential value for 20X6.

e. Record the dividend from Scope Company for 20X7.

f. Record the equity-method income/loss for 20X7.

g. Record the amortization of the differential value for 20X7.

h. Record the dividend from Scope Company for 20X8.

i. Record the equity-method income/loss for 20X8.

j. Record the amortization of the differential value for 20X8.