Shames Company is located in London, England. The local currency is the British pound (). On January 1, 20X8, Pit Company purchased an 70 percent interest in Shames for $403,000, which resulted in an excess of cost-over-book value of $80,000 due solely to a trademark having a remaining life of 10 years. Pit uses the equity method to account for its investment. Shamess December 31, 20X8, trial balance has been translated into U.S. dollars, requiring a translation adjustment debit of $6,500. Shamess net income translated into U.S. dollars is $71,000. It declared and paid a 20,000 dividend on May 1, 20X8. Relevant exchange rates are as follows:

			$
January 1, 20X8	1	=	1.60
May 1, 20X8	1	=	1.64
December 31, 20X8	1	=	1.65
Average for 20X8	1	=	1.63

Required: DO JE a. Record the dividend received by Pit from Shames. b. Prepare the entries to record Pits equity in the net income of Shames and the parents share of the translation adjustment (Record the equity accrual, Record the parent's share of subsidiary's translation adjustment.

c. Show a calculation of the differential reported on the consolidated balance sheet of December 31, 20X8, and the translation adjustment from differential. (Amounts to be deducted should be entered with a minus sign. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

	British pounds	Exchange rate	U.S. Dollars
Income Statement:
Differential Jan. 1, 20X8
Amortization for 20X8
Remaining balance	0		$0
Balance Sheet:
Remaining balance on Dec. 31 translated at year-end rate
Difference to translation adjustment			$0

d. Record the entry to recognize the translation adjustment for the increase in the differential.

e. Record the entry to amortize the trademark for 20X1

f. Calculate the amount of the translation adjustment reported on the statement of comprehensive income as an element of other comprehensive income. (What amount and is it a credit or debit balance)