Arm, Inc. acquired 15% of Waist Corporation on January 1, 2017,
for $410,000 when the book value of Waist’s net assets was
$1,050,000. During 2017, Waist reported net income of $230,000 and
paid dividends of $90,000. On January 1, 2017, Arm purchased an
additional 25% of Waist for $510,000. Any excess of cost over book
value was attributable to goodwill (No amortization). On that same
date, Arm changed to the equity method. During 2018, Waist reported
net income of $480,000...