Shames Company is located in London, England. The local currency is the British pound $().$ On January $1,20$X$8,$ Pit Company

purchased an $80$ percent interest in Shames for $$408,000,$ which resulted in an excess of cost$-$over$-$book value of $$32,000$ due solely

to a trademark having a remaining life of $10$ years. Pit uses the equity method to account for its investment.

Shames's December $31,20$X$8,$ trial balance has been translated into U$.$S$.$ dollars, requiring a translation adjustment debit of $$7,000.$

Shames's net income translated into U$.$S$.$ dollars is $$64,000.$ It declared and paid a $17,000$ dividend on May $1,208.$

Relevant exchange rates are as follows:

Required:

a$.$ Record the dividend received by Pit from Shames.

b$.$ Prepare the entries to record Pit's equity in the net income of Shames and the parent's share of the translation adjustment.

c$.$ Show a calculation of the differential reported on the consolidated balance sheet of December $31,20$X$8,$ and the translation

adjustment from differential.

d$.$ Record the amortization of the trademark on Pit's books.

e$.$ Calculate the amount of the translation adjustment reported on the statement of comprehensive income as an element of other

comprehensive income.

Complete this question by entering your answers in the tabs below.

Record the dividend received by Pit from Shames.

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

Journal entry worksheet

A