On January $1,2025,$ Culver Co$.$ purchased $24,000$ shares $($a $10\%$ interest$)$ in Elton John Corp. for $$1,260,000.$ At the time, the book value and the fair value of John's net assets were $$12,000,000.$

On July $1,2026,$ Culver paid $$3,110,000$ for $48,000$ additional shares of John common stock, which represented a $20\%$ investment in John. As a result of this transaction, Culver owns $30\%$ of John and can exercise significant influence over John's operating and financial policies.