Capital Corporation purchased 100 percent of Cook Company's stock on January 1, 20X4, for $340,000.

Capital Corporation purchased 100 percent of Cook Company's stock on January 1, 20X4, for $340,000. On that date, Cook reported net assets with a historical cost of $300,000 and a fair value of $340,000. The difference was due to the increased value of buildings with a remaining life of 10 years. During 20X4 and 20X5 Cook reported net income of $10,000 and $20,000 and paid dividends of $6,000 and $9,000, respectively.Record dividend from Cook Company for 20X4.