On January 1, 2019, Uncle Company purchased 80 percent of Nephew Company's capital stock for $704,000 in cash and other assets. Nephew had a book value of $844,000, and the 20 percent noncontrolling interest fair value was $176,000 on that date. On January 1, 2021, Nephew had acquired 30 percent of Uncle for $305,000. Uncle's appropriately adjusted book value as of that date was $950,000. Separate operating income figures (not including investment income) for these two companies follow. In addition, Uncle declares and pays $25,000 in dividends to shareholders each year and Nephew distributes $6,000 annually. Any excess fair-value allocations are amortized over a 10-year period. Year Uncle Company Nephew Company 2019 $ 84,000 $ 41,800 2020 130,000 58,800