On January 1, 2023, Lamar Company acquired 90,000 of the outstanding shares of Mitchell Company for $15 per share. This acquisition gave Lamar a 30% ownership of Mitchell and allowed Lamar to significantly influence Mitchell's decisions. As of January 1, 2023, Mitchell had assets with a book value of $3,000,000 and liabilities of $1,000,000. At that time, Mitchell held equipment with a ten-year remaining life and no salvage value, that was overvalued by $400,000. Mitchell also held a patent with a seven-year remaining life on its books that was undervalued by $700,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Lamar applies the equity method for its investment in Mitchell. Mitchell's policy is to declare and pay a $1 per share cash dividend every October 1. Mitchell's income, earned evenly throughout each year was $800,000 in 2023, and $750,000 in 2024. Required: 1. Record Lamar's investment in Mitchell on January 1, 2023. 2. Determine the equity income to be recognized by Lamar during 2023 and 2024. Show your work. 3. Compute Lamar's Investment in Mitchell Company's balance as of December 31, 2023, and December 31, 2024. Show your work. 4. Assume Lamar's 30% investment in Mitchell does not allow Lamar to exert significant influence over Mitchell. Compute Lamar's Investment in Mitchell Company balance as of December 31, 2023, and December 31, 2024. Show your work.