On January 2, 2014, Max Corporation acquired 30 percent of the outstanding common stock of Rich Company for $1,000,000. This acquisition gave Max the ability to exercise significant influence over the invested. The book value of the acquired shares was $790,000. Any excess cost over the book value was assigned to a patent that was undervalued on Rich's balance sheet. This patent has a remaining useful life of 7 years. For the year ended December 31, 2014, Rich reported net income of $250,000 and paid cash dividends of $95,000