S$169$ On January $6,2023,$ Ling Corp. paid $$5,000,000$ for its $40$ percent investment in True World Inc. Assume that on December $31$ that same year, True World earned net income of $$1,800,000$ and paid cash dividends of $$800,000.$

What method should Ling Corp. use to account for the investment in True World Inc.? Give your reason.

Journalize these three transactions on the books of Ling Corp. Include an explanation for each entry. Ignore any brokerage commission expenses.

Post to the Investment in True World Inc. Common Shares T$-$account. What is its balance after all the transactions are posted?