Matthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly influence the investee's operations and decision making. On January 1, 2015, the balance in the Investment in Lindman account is $419,000. Amortization associated with this acquisition is $15,600 per year. In 2015, Lindman earns an income of $135,000 and declares cash dividends of $45,000. Previously, in 2014, Lindman had sold inventory costing $30,400 to Matthew for $38,000. Matthew consumed all but 25 percent of this merchandise during 2014 and used the rest during 2015. Lindman sold additional inventory costing $41,800 to Matthew for $55,000 in 2015. Matthew did not consume 40 percent of these 2015 purchases from Lindman until 2016. a. What amount of equity method income would Matthew recognize in 2015 from its ownership interest in Lindman? Equity income b. What is the equity method balance in the Investment in Lindman account at the end of 2015? Equity balance On January 4, 2012, Harley, Inc. acquired 40% of the outstanding common stock of Bike Co. for $2,400,000. This investment gave Harley the ability to exercise significant influence over Bike. Bike's assets on that date were recorded at $10,500,000 with liabilities of $4,500,000. There were no other differences between book and fair values. During 2012, Bike reported net income of $500,000. For 2013, Bike reported net income of $800,000. Dividends of $300,000 were paid in each of these two years. What was the reported balance of Harley's Investment in Bike Co. at December 31, 2012? $2,900,000. O $2,400,000 O $2,600,000. O $880,000 $2,480,000