Softball Corporation reported the following balances at January 1, 20X9:

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

Give 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.

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Item Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Common Stock ($10 par value) Additional Paid-In Capital Retained Earnings Total Liabilities & Equities Book Value $ 45,000 60,000 120,000 300,000 (150,000) $375,000 $ 75,000 100,000 30,000 170,000 $375,000 Fair Value $ 45,000 60,000 130,000 240,000 $475,000 $ 75,000