In 2014, david company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $2,400,000. the facilities were sold in march 2015 and a $2,400,000 loss was recognized for tax purposes. also in 2014, david paid $100,000 in premiums for a two-year life insurance policy in which the company was the beneficiary. assuming that the enacted tax rate is 30% in both 2014 and 2015, and that david paid $780,000 in income taxes in 2014, the amount reported as net deferred income taxes on david's balance sheet at december 31, 2014, should be aa. $680,000 asset. b. $360,000 asset. c. $360,000 liability. d. $720,000 asset.

On january 1, 2017, fisher corporation purchased 40 percent (90,000 shares) of the common stock of bowden, inc. for $980,000 in cash and began to use the equity method for the investment. the price paid represented a $48,000 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 $90,000 cash dividend to its stockholders each year on september 15. bowden reported net income of $400,000 in 2017 and $348,000 in 2018. each income figure was earned evenly throughout its respective year. on july 1, 2018, fisher sold 10 percent (22,500 shares) of bowden's outstanding shares for $338,000 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.)