On January 1, 2017, Travers Company acquired 90 percent of Yarrow Company's outstanding stock for $927,000. The 10 percent noncontrolling interest had an assessed fair value of $103,000 on that date. Any acquisition-date excess fair value over book value was attributed to an unrecorded customer list developed by Yarrow with a remaining life of 15 years.

On the same date, Yarrow acquired an 80 percent interest in Stookey Company for $528,000. At the acquisition date, the 20 percent noncontrolling interest fair value was $132,000. Any excess fair value was attributed to a fully amortized copyright that had a remaining life of 10 years. Although both investments are accounted for using the initial value method, neither Yarrow nor Stookey have distributed dividends since the acquisition date. Travers has a policy to declare and pay cash dividends each year equal to 40 percent of its separate company operating earnings. Reported income totals for 2017 follow: