Question: on january 1 2017 fisher corporation purchased 40 percent 80000...
On January 1, 2017, Fisher Corporation purchased 40 percent (80,000 shares) of the common stock of Bowden, Inc. for $978,000 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 $408,000 in 2017 and $358,000 in 2018. Each income figure was earned evenly throughout its respective year.
On July 1, 2018, Fisher sold 10 percent (20,000 shares) of Bowden's outstanding shares for $340,000 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)