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On January 1, 2020, Fisher Corporation purchased 40 percent (82,000 shares) of the common stock of...

On January 1, 2020, Fisher Corporation purchased 40 percent (82,000 shares) of the common stock of Bowden, Inc., for $988,000 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 $96,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $396,000 in 2020 and $352,000 in 2021. Each income figure was earned evenly throughout its respective years. On July 1, 2021, Fisher sold 10 percent (20,500 shares) of Bowden's outstanding shares for $332,000 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 2020 and 2021

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