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 $$353,000.$ Amortization associated with this acquisition is

$$15,900$ per year. In $2024,$ Lindman earns an income of $$213,000$ and declares

cash dividends of $$71,000.$ Previously, in $2023,$ Lindman had sold inventory

costing $$49,000$ to Matthew for $$70,000.$ Matthew consumed all but $20$ percent

of this merchandise during $2023$ and used the rest during $2024.$ Lindman sold

additional inventory costing $$56,100$ to Matthew for $$85,000$ 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 $2024?$

Answer is complete but not entirely correct.