Matthew, Incorporated owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee's operation and decision making. On January 1, 2024, the balance in the Investment in Lindman account is $348,000. Amortization associated with this acquisition is $16,900 per year. In 2024, Lindman earns an income of $98,000 and declares cash dividends of $49,000. Previously, in 2023, Lindman had sold inventory costing $29,400 to Matthew for $42,000. Matthew consumed all but 25 percent of this merchandise during 2023 and used the rest during 2024. Lindman sold additional inventory costing $46,200 to Matthew for $70,000 in 2024. Matthew did not consume 40 percent of these 2024 purchases from Lindman until 2025.

Matthew Incorporated ownership in Lindman	30%
Matthew Investment in Lindman	348,000
Amortization	16,900
Lindman 2024 Income	98,000
Lindman 2024 Dividends	49,000

Lindman Inventory Sales to Matthew	Sale	Cost	Inventory Held at End of Year
2023 Inventory Sale	42,000	29,400	25%
2024 Inventory Sale	70,000	46,200	40%

Required:

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

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

Matthew, Incorporated owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee's operation and decision making. On January 1,2024, the balance in the Investment in Lindman account is $348,000. Amortization associated with this acquisition is $16,900 per year. In 2024, Lindman earns an income of $98,000 and declares cash dividends of $49,000. Previously, in 2023 , Lindman had sold inventory costing $29,400 to Matthew for $42,000. Matthew consumed all but 25 percent of this merchandise during 2023 and used the rest during 2024. Lindman sold additional inventory costing $46,200 to Matthew for $70,000 in 2024. Matthew did not consume 40 percent of these 2024 purchases from Lindman until 2025. a. What amount of equity method income would Matthew recognize in 2024 from its ownership interest in Lindman