Matthew, Incorporated, 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 $1,2024,$ the balance in the

Investment in Lindman account is $$393,000.$ Amortization associated with this acquisition is $$9,900$ per year. In $2024,$

Lindman earns an income of $$172,000$ and declares cash dividends of $$43,000.$ Previously, in $2023,$ Lindman had

sold inventory costing $$44,400$ to Matthew for $$74,000.$ Matthew consumed all but $25$ percent of this merchandise

during $2023$ and used the rest during $2024.$ Lindman sold additional inventory costing $$50,400$ to Matthew for

$$90,000$ in $2024.$ Matthew did not consume $40$ percent of these $2024$ purchases from Lindman until $2025.$

Required:

a$.$ What amount of equity method income would Matthew recognize in $2024$ from its ownership interest in Lindman?

b$.$ What is the equity method balance in the Investment in Lindman account at the end of $2024?$

a$.$ Equity income

b$.$ Balance of investment in Lindman account