Matthew, Inc., owns $30$ percent of the outstanding stock of Lindman Company and has the ability to significantly Influence the

Investee's operations and decision making. On January $1,2021,$ the balance In the Investment In Lindman account is $$336,000.$

Amortization of excess fair value assoclated with the $30\%$ ownership is $$17,100$ per year. In $2021,$ Lindman earns an Income

of $$126,000$ and declares cash dividends of $$31,500.$ Previously, In $2020,$ Lindman had sold Inventory costing $$31,800$ to Matthew for

$$53,000.$ Matthew consumed all but $25$ percent of this merchandise during $2020$ and used the rest during $2021.$ Lindman sold

additional Inventory costing $$39,200$ to Matthew for $$70,000$ in $2021.$ Matthew did not consume $40$ percent of these $2021$ purchases

from Lindman until $2022.$

a$.$ What amount of equity method Income would Matthew recognize in $2021$ from Its ownership interest in Lindman?

b$.$ What is the equity method balance in the Investment In Lindman account at the end of $2021?$