Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1, 2013, for $102,160 and categorizes the investment as an available-for-sale security. An additional 20 percent of the stock is purchased on January 1, 2014, for $247,000, which gives Anderson the ability to significantly influence Barringer. Barringer has a book value of $900,000 at January 1, 2013, and records net income of $235,000 for that year. Barringer declared and paid dividends of $104,000 during 2013. The book values of Barringer's asset and liability accounts are considered as equal to fair values except for a copyright whose value accounted for Anderson's excess cost in each purchase. The copyright had a remaining life of 16 years at January 1, 2013.

Barringer reported $285,500 of net income during 2014 and $389,500 in 2015. Dividends of $145,000 are declared and paid in each of these years. Anderson uses the equity method.