..................................................n January 1, 2017, Fisher Corporation purchased 40 percent(74,000 shares) of the common stock of Bowden, Inc. for $978,000 incash and began to use the equity method for the investment. Theprice paid represented a $66,000 payment in excess of the bookvalue of Fisher's share of Bowden's underlying net assets. Fisherwas willing to make this extra payment because of a recentlydeveloped patent held by Bowden with a 15-year remaining life. Allother assets were considered appropriately valued on Bowden'sbooks. Bowden declares and pays a $90,000 cash dividend to itsstockholders each year on September 15. Bowden reported net incomeof $400,000 in 2017 and $352,000 in 2018. Each income figure wasearned evenly throughout its respective year. On July 1, 2018,Fisher sold 10 percent (18,500 shares) of Bowden's outstandingshares for $320,000 in cash. Although it sold this interest, Fishermaintained the ability to significantly influence Bowden'sdecision-making process.............................