On January 1, 2023, Fisher Corporation purchased 40 percent (86,000 shares) of the common stock of Bowden, Incorporated, for $986,000 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 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 $104,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $396,000 in 2023 and $354,000 in 2024. Each income figure was earned evenly throughout its respective years.

On July 1, 2024, Fisher sold 10 percent (21,500 shares) of Bowden's outstanding shares for $328,000 in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decision-making process.

Required:

Prepare the journal entries for Fisher for the years of 2023 and 2024.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

1. Record the acquisition of Bowden's shares.
2. Record the annual dividend declared and recieved from Bowden
3. Record the accrual of income for 2023
4. Record the amortization for 2023
5. Record the accrual of income through 07/01/24
6. Record the amortization through 07/01/24
7. Record the sale of shares
8. Record the annual dividend declared and received
9. Record the accrual of income for the second half of the year
10. Record the amortization for the second half of the year