On January 1, 2017, Fisher Corporation purchased 40 percent ( 80, 000 shares) of the common stock of Bowen, Inc. for 978,000 in cash and began to use the equity method for the investment. The price paid represented a $66,000 payment in excess of the book value of Fisher's share of Bowden's undelying 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 $102,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $396,000 in 2017 and $360,000 in 2018. Each income figure was earned evenly throughout its respective year.

On July 1, 2018, Fisher sold 10 percent (20,000 shares) of Bowden's outstanding shares for 334,000 in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decision-making process.

Prepare the jorunal entries for Fisher for the years of 2017 and 2018

1) Record cost of 80,000 shares of Bowden Company

2) Record the annual dividend declared and received for Bowden.

3) Record accrue 2017 income based on 40% ownership of Bowden

4) Record amortization of $66,000 excess patent fair value over (indicated in problem) 15 years

5) Record the entry to accrue 1/2 year income of 40 % ownership

6) Record 1/2 year amortization of patent to establish correct book value for investment as of 7/1/18

7) Record 20,000 shares of Bowden Company sold; investment basis computed below

8) Record annual dividend declared and received.

9) Record 1/2 year income base on remaining 30% ownership

10) Record 1/2 year of patent amortization