On July 1, 2022, Burrough Company acquired 78,000 of the outstanding shares of Carter Company for $15 per share. This acquisition gave Burrough a 25 percent ownership of Carter and allowed Burrough to significantly influence the investee's decisions. As of July 1, 2022, the investee had assets with a book value of $3 million and liabilities of $148,400. At the time, Carter held equipment appraised at $322,000 more than book value; it was considered to have a seven-year remaining life with no salvage value. Carter also held a copyright with a fiveyear remaining life on its books that was undervalued by $1,232,000. Any remaining excess cost was attributable to an indefinite-lived trademark. Depreciation and amortization are computed using the straight-line method. Burrough applies the equity method for its investment in Carter. Carter's policy is to declare and pay a \$1 per share cash dividend every April 1 and October 1. Carter's income, earned evenly throughout each year, was $604,000 in 2022, \$637,200 in 2023, and \$694,600 in 2024. In addition, Burrough sold inventory costing $93,600 to Carter for $156,000 during 2023. Carter resold $105,500 of this Inventory during 2023 and the remaining $50,500 during 2024. Required: a. Determine the equity income to be recognized by Burrough during each of these years. b. Compute Burrough's investment in Carter Company's balance as of December 31, 2024. Note: For all requirements, enter your answers in whole dollars and not in millions, \begin{tabular}{|l|l|} \hline a. Equity income 2022 \\ \hline a. Equity income 2023 \\ \hline a. Equity income 2024 \\ \hline b. Investment in Carter \\ \hline \end{tabular}