Equity Method Investment with Cost in Excess of Book Value

patents $(10-$year life$)$ are undervalued by $$2$ million and it has unreported technology $(5-$year life$)$ valued at $$4$ million. Ronco pays dividends of $$300,000$ and reports net income of $$1,500,000$ for $2022.$

Required

Prepare the journal entries on Revco's books to report the above information assuming Revco accounts for its investment in Ronco using the equity method.

At what amount does Revco report the investment in Ronco on its December $31,2022,$ balance sheet?