On January 1, 2017, Fisher Corporation purchased 40 percent ( 88,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 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 $96,000 cash dividend to its stockholders each year on September 15 . Bowden reported net income of $412,000 in 2017 and $348,000 in 2018 . Each income figure was earned evenly throughout its respective year