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 $408,000, which resulted in an excess of cost-over-book value of $64,000 due solely to a trademark having a remaining life of 10 years. Pit uses the equity method to account for its investment. hames’s December 31, 20X8, trial balance has been translated into U. S. dollars, requiring a translation adjustment debit of $6,800. Shames’s net income translated into U. S. dollars is $71,000. It declared and paid a £17,000 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