On January 2, 2021, Barley Corp. purchased 40% of the voting common stock of Wheat Co., paying $3,000,000. Barley property accounts for this investment using the equity method. At the time of the investment. Wheat's total stockholders' equity was $5,000,000. Barley gathered the following information about Wheat's assets and liabilities whose book values and fair values differed: Buildings (20-year life) Equipment (5-year life) Franchises (10-year life) Book Value $1,000,000 1,500,000 Fair Value $1,800,000 0 2,000,000 700,000 Any excess of cost over fair value was attributed to goodwill, which has not been impaired. Wheat Co. reported net income of $400,000 for 2021, and paid dividends of $200,000 during that year.