On January $1,2024,$ Madison Corporation purchased $30\%$ of the voting common stock of Huntsville Company, paying $$2,000,000.$ Madison decided to use the equity method to account for this investment. At the time of the investment, Huntsville$$s total stockholders$$ equity was $$6,000,000.$ Madison gathered the following information about Huntsville$$s assets and liabilities:

Book Value

Fair Value

Buildings $(10-$year life$)$

$ $200,000$

$ $400,000$

Equipment $(5-$year life$)$

$ $1,000,000$

$ $1,200,000$

Franchises $(8-$year life$)$

$ $0$

$ $240,000$

For all other assets and liabilities, book value and fair value were equal. Any excess of cost over fair value was attributed to goodwill, which has not been impaired.