Variable universal life and variable annuity products are also marketed in other states through alliances with unaffiliated Farm Bureau companies. We also market variable products through alliances with two life insurance companies and a regional broker-dealer not affiliated with Farm Bureau. Several subsidiaries support various functional areas of the Life Companies and other affiliates, by providing investment advisory, marketing and distribution, and leasing services. In addition, we manage four Farm Bureau affiliated property-casualty insurance companies.
Income from discontinued operations totaled $0.3 million for 1998 and revenues from discontinued operations totaled $12.9 million through the date of sale in 1998.
Revenues, benefits and expenses will increase in 2001 as a result of our acquisition of the assets and liabilities of Kansas Farm Bureau Life Insurance Company. As a privately held company, Kansas Farm Bureau Life did not prepare financial statements in accordance with GAAP. Accordingly, historical GAAP financial statements and pro forma results assuming the acquisition on a historical basis are not available. Net income, based on statutory accounting principles, totaled $1.7 million in 2000, $4.8 million in 1999 and $4.7 million in 1998. We believe the acquisition will be slightly accretive to earnings per share in 2001.
Internal investment professionals manage our investment portfolio. The investment strategy is designed to achieve superior risk-adjusted returns consistent with the investment philosophy of maintaining a largely investment grade portfolio and providing adequate liquidity for obligations to policyholders and other requirements. We continually review the returns on invested assets and change the mix of invested assets as deemed prudent under the current market environment to help maximize current income.
Other income and other expenses consist primarily of revenue and expenses generated by our various non-insurance subsidiaries for investment advisory, marketing and distribution, and leasing services. They also include revenues and expenses generated by our parent company for management services. Certain of these activities are performed on behalf of affiliates of the Company. In addition, certain revenues generated by our insurance subsidiaries are classified as other income. Revenues of the insurance subsidiaries included as other income aggregated $1.2 million in 2000, $0.6 million in 1999 and $1.4 million in 1998. Lease income from leases with affiliates totaled $9.2 million in 2000, $7.9 million in 1999 and $5.8 million in 1998. Investment advisory fee income from affiliates totaled $1.2 million in 2000, $1.5 million in 1999 and $1.3 million in 1998.
We have a common stock investment in American Equity Investment Life Holding Company (American Equity), an insurance company that underwrites and markets life insurance and annuity products throughout the United States. The investment is accounted for using the equity method and is included in the securities and indebtedness of related parties line on the consolidated balance sheets. Due to the timing of the availability of financial information, during 2000 we switched from recording our share of American Equity's results from a current basis to one quarter in arrears. The impact of this change on our financial statements was not material. The carrying value of our common stock investment in American Equity includes goodwill totaling $5.0 million in 2000 and $5.3 million in 1999. In addition to the common stock, during 1999 we acquired $2.3 million in preferred stock issued by a subsidiary of American Equity. Summarized financial information for American Equity and our common stock ownership percentage is as follows:
Prior to 1984, a portion of Farm Bureau Life's current income was not subject to current income taxation, but was accumulated, for tax purposes, in a memorandum account designated as "policyholders' surplus account." The aggregate accumulation in this account at December 31, 2000 was $11.9 million. Should the policyholders' surplus account exceed the limitation prescribed by federal income tax law, or should distributions be made to the parent company in excess of $511.9 million, such excess would be subject to federal income taxes at rates then effective. Deferred income taxes of $4.2 million have not been provided on amounts included in this memorandum account.
During 1999, Western Farm Bureau Life Insurance Company (Western Life), a former wholly-owned subsidiary, merged into Farm Bureau Life. Concurrent with the merger, Western Life redeemed 22,517 shares of its redeemable preferred stock for $4.5 million. The redeemable preferred stock and related dividends were reported as minority interest in subsidiaries in the consolidated financial statements.
We have a Class A Common Stock Compensation Plan (the Plan) under which incentive stock options, nonqualified stock options, bonus stock, restricted stock and stock appreciation rights may be granted to directors, officers and employees. Option shares granted to directors are fully vested upon grant and have a contractual term that varies with the length of time the director remains on the Board. Option shares granted to officers and employees have a contractual term of 10 years and generally vest over a period up to five years, contingent upon continued employment with us.
We share certain office facilities and services with the Iowa Farm Bureau Federation and its affiliated companies. These expenses are allocated on the basis of cost and time studies that are updated annually and consist primarily of salaries and related expenses, travel and other operating costs.
On March 31, 1998, we sold our wholly-owned subsidiary, Utah Farm Bureau Insurance Company (Utah Insurance), to Farm Bureau Mutual. We recorded gains on the sale totaling $0.6 million in 2000, $1.4 million in 1999 and $1.0 million in 1998. The 2000 and 1999 gains and $0.8 million of the 1998 gain were earned in connection with an earn-out provision included in the underlying sales agreement. The gains are net of income taxes (credits) totaling $1.4 million in 2000, $0.6 million in 1999 and ($0.5) million in 1998.