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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 1,2023, Fisher Corporation purchased 40 percent (76,000 shares) of the common stock of Bowden, Incorporated, for $990,000 in cash and began to use the equity method for the investment. The price paid represented a $54,000 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 15-year remaining life. All other assets were considered appropriately valued on Bowden's books.
Bowden declares and pays a $90,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $404,000 in 2023 and $356,000 in 2024. Each income figure was earned evenly throughout its respective years.
On July 1,2024, Fisher sold 10 percent (19,000 shares) of Bowden's outstanding shares for $326,000 in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decision-making process.

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