Pistol Corporation purchased 100 percent ownership of Scope Products on January 1, 20X6, for $64,000, at which time Scope Products reported retained earnings of $13,000 and capital stock outstanding of $26,000. The differential was attributable to patents with a life of four years. Income and dividends of Scope Products were

Year	Net Income			Dividends
20X6	$	24,000		$	10,000
20X7		32,000			12,000
20X8		40,000			12,000

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.)

2. What is the balance of the Investment in Scope account on Pistol's balance sheet at December 31, 20X8, after all required equity method entries have been recorded?

Journal entry worksheet Record the purchase of Scope Company. Note: Enter debits before credits. General Journal Debit Credit Date (1a) Record entry Clear entry View general journal