Hi$-$Light Group acquires $60\%$ of K$-$Mart Stores for $$80$ million on January $1,2021.$ At the time

of acquisition, K$-$Mart Stores has total net assets with fair value of $$50$ million. For the years

ended December $31,2021,$ December $31,2022$ and December $31,2023,$ K$-$Mart reports net

income $($loss$)$ and pay dividends as shown here:

Net Income $($Loss$)$ Dividends paid

$20214000,0002000,000$

$2022(1200,000)1600,000$

$20232000,0001000,000$

a$.$ Compute the value of Hi$-$Light Group$$s investment in K$-$Mart Stores as of December

$31,2023,$ under the equity method. Show year$-$wise computations neatly.

b$.$ What is equity method and Consolidated method applied for inter$-$corporate

investments? Explain with suitable examples.