On January 1, 2017, Fisher Corporation purchased 40 percent (70,000 shares) of the common stock of Bowden, Inc. for $974,000 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 $96,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $388,000 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 (17,500 shares) of Bowden's outstanding shares for $322,000 in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decision-making process.

Prepare the journal entries for Fisher for the years of 2017 and 2018. 10 journal entries Can you show me each step so I can know how to do it in the future.

1.Recordcostof70,000sharesofBowdenCompany.

• 1/1/17

2.Record the annual dividend declared and received from Bowden

9/15/2017

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

12/31/17

4.Record amortization of $54,000 excess patent fair value [indicated in problem] over 15 years.

12/31/17

• 5.Recordtheentrytoaccrueyearincomeof40%ownership.
• 7/01/18

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

7/01/18

7.Record 17,500 shares of Bowden Company sold; investment basis computed below.

7/01/18

8. Record the annual dividend declared and received from Bowden

9/15/18

9.Record year income based on remaining 30% ownership

12/31/18

10.Record year of patent amortization.

12/31/18