On January 1, 2020, Stream Company acquired 30 percent of the outstanding voting shares of Q-Video, Inc., for $684,000. Q-Video manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book values of $2.4 million and $798,000, respectively. A customer list compiled by Q-Video had an appraised value of $370,000, although it was not recorded on its books. The expected remaining life of the customer list was five years with straight-line amortization deemed appropriate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill. Q-Video generated net income of $386,000 in 2020 and a net loss of $96,000 in 2021. In each of these two years, Q-Video declared and paid a cash dividend of $14,000 to its stockholders. During 2020, Q-Video sold inventory that had an original cost of $95,580 to Stream for $162,000. Of this balance, $81,000 was resold to outsiders during 2020, and the remainder was sold during 2021. In 2021, Q-Video sold inventory to Stream for $176,000. This inventory had cost only $132,000. Stream resold $96,000 of the inventory during 2021 and the rest during 2022.
For 2020 and then for 2021, compute the amount that Stream should report as income from its investment in Q-Video in its external financial statements under the equity method.
