i dont understand question 7 and read it and write a clear

7) On January 1, 2020, Lidia Inc. acquired 30% of the shares of Abdul Company and has significant influence and qualifies for the Equity Method. Lidia paid $4,000,000 for the investment, and that amount is exactly equal to 30% of the book value of identifiable net assets on Abdul's balance sheet. Abdul recognized net income of $1,000,000 for 2020 and paid $125,000 of dividends each quarter to its shareholders. After all closing entries are made, Lidia's "Investment in Abdul Company" account would have a balance of