Suppose that on January $6,2024,$ East Coast Motors paid $$280,000,000$ for its $35\%$ investment in Boxcar Motors. East Coast has significant influence over Boxcar after the purchase. Assume Boxcar earned net income of $$90,000,000$ and paid cash dividends of $$45,000,000$ to all outstanding stockholders during $2024.($Assume all outstanding stock is voting stock.$)$

Read the requirements.

Requirement $1.$ What method should East Coast Motors use to account for the investment in Boxcar Motors? Give your reasoning.

East Coast Motors should use the the investment