During $2023,$ Abernethy reported net income of $$80,000$ while declaring and paying dividends of $$10,000.$ During $2024,$ Abernethy reported net income of $$110,000$ while declaring and paying dividends of $$30,000.$

Assume that Chapman Company acquired Abernethy$$s common stock for $$500,000$ in cash. Assume that the equipment and long$-$term liabilities had fair values of $$220,000$ and $$120,000,$ respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.