Alfred​ Chandler, a professor at the Harvard Business​ School, has​ observed, ​"Imagine the diseconomies of scaleLOADING...the great increase in unit coststhat would result from placing close to​ one-fourth of the​ world's production of​ shoes, or​ textiles, or lumber into three factories or​ mills!" The​ shoe, textiles, and lumber industries are very competitive with many firms producing each of these products. ​Source: Alfred D.​ Chandler, Jr.,​ "The Emergence of Managerial​ Capitalism," in Alfred D.​ Chandler, Jr. and Richard S.​ Tedlow, The Coming of Managerial Capitalism​, New​ York: Irwin,​ 1985, p. 406. What does​ Chandler's observation​ suggest?

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.)