Assume that Michel Company paid $130,000 in cash to acquire 3,000 of the 10,000 outstanding shares of Rios Company (30% of the fair value of Rioss net assets) on January 1. Assume the book value and fair value of Rioss assets and liabilities are equal. Dividends of $15,000 are paid on November 1. Rioss net income for the fiscal year ending December 31 is $25,000.