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On January 1 , 2 0 2 3 , Fisher Corporation purchased 4 0 percent ( 7 6 , 0 0 0 shares ) of
On January Fisher Corporation purchased percent shares of the common stock of Bowden, Incorporated, for $ in cash and began to use the equity method for the investment. The price paid represented a $ payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a year remaining life. All other assets were considered appropriately valued on Bowden's books.
Bowden declares and pays a $ cash dividend to its stockholders each year on September Bowden reported net income of $ in and $ in Each income figure was earned evenly throughout its respective years.
On July Fisher sold percent shares of Bowden's outstanding shares for $ in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decisionmaking process.
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