Matthew. incorporated. owns $30$ percent of the outstanding stock of Llndman Company and has the ability to significantly influence the

investee$$s operations and decision making. On January $1.2024.$ the balance In the Investment in Llndman account is $$433000.$

Amortization associated with this acquisition is $$18,800$ per year. in $2024.$ Llndman earns an income of $$91,000$ and declares cash

dividends of $$45,500.$ Previously, in $2023,$ Llndman had sold Inventory costing $$27,000$ to Matthew for $$45,000.$ Matthew consumed

all but $25$ percent of this merchandise during $2023$ and used the rest during $2024.$ Llndman sold additional inventory costing $$36,400$

to Matthew for $$65,000$ in $2024.$ Matthew did not consume $40$ percent of these $2024$ purchases from Llndman until $2025.$

a$.$ What amount of equity method income would Matthew recognize In $2024$ from Its ownership interest in Llndman?

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