Rich, inc acquired $30\%$ of Doane Corporation's voting stock on January $1,2020$ for $$1,000,000.$ During $2020,$ Doane earned $$400,000$ and paid dividends of $$250,000.$ Rich's $30\%$ interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies.

Before income taxes, what amount should Rich include in its $2020$ income statement as a result of the investment?

What should be the carrying amount of this investment in Rich's December $31,2020$ balance sheet?

Please provide explanations with answers.