Equity method vs Fair Value Method $($MC $19$ & $20)$

On January $1,2022,$ an investor purchases for $20,000$ shares of an investee at $$12$ per share. The shares represent $25\%$ ownership in the investee. The investee's common stock does not have a readily determinable value. On January $1,2022,$ the book value of the investee's identifiable net assets and liabilities equals $$850,000$ and $$300,000,$ respectively. On that date, the appraised fair values of the investee's identifiable net assets approximated the recorded book values, except for a customer list. On January $1,2022,$ the customer list had a book value of $$0$ and a fair value estimated at $$50,000$ and a $5$ year remaining useful life. During the year ended Dec. $31,2022,$ the investee company reported net income equal to $$80,000$ and dividends equal to $$24,000.$

A$.1.$ If the investor CANNOT exert significant influence over the investee, what method must the investor use to record the investment?

$2.$ Make the journal entries for the $2022$ year.

$3.$ What is the balance in the investment account.

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