Phillips Company bought 40 % ownership in Jones Bag Company on 1st January, 2001, at underlying book value. In 2001, 2002, and 2003, Jones Bag reported net income of $8,000, $12,000, and $20,000, and dividends of $15,000, $10,000, and $10,000, correspondingly. The balance in Phillips Company's investment account on 31st December, 2003, was $54,000.