Softball Corporation reported the following balances at January 1, 20X9: Item Book Value Fair Value Cash $ 45,000 $ 45,000 Accounts Receivable 60,000 60,000 Inventory 120,000 130,000 Buildings and Equipment 300,000 240,000 Less: Accumulated Depreciation (150,000) Total Assets $ 375,000 $ 475,000 Accounts Payable $ 75,000 $ 75,000 Common Stock ($10 par value) 100,000 Additional Paid-In Capital 30,000 Retained Earnings 170,000 Total Liabilities and Equities $ 375,000 On January 1, 20X9, Pitcher Corporation purchased 100 percent of Softball's stock. All tangible assets had a remaining economic life of 10 years at January 1, 20X9. Both companies use the FIFO inventory method. Softball reported net income of $16,000 in 20X9 and paid dividends of $3,200 Pitcher uses the equity method in accounting for its investment in Softball.

Required:

Prepare all journal entries that Pitcher recorded during 20X9 with respect to its investment assuming Pitcher paid $437,500 for the ownership of Softball on January 1, 20X9. The amount of the differential assigned to goodwill is not impaired.

Record the purchase of Softball.

Record the dividend received from Softball.

Record the equity-method income/loss.

Record the amortization of the differential assigned to inventory carried on a FIFO basis.

Record the amortization of the differential assigned to buildings and equipment.