On July $1,2022,$ Burrough Co acquired $106,000$ of the outstanding shares iof Carter Co fo $$13$per share. The aquistiocquisition gave BrrougBurrough a $40\%$ ownership iof Carter and alliweallowed Burrough to significantly influence the investee's decisions.

As of July $1,2022,$ the investee had assets with a book value of $$3$ million and liabilities of $$509,500.$ At the same time, Carter held equipment appraised at $$122,500$ more than book value; it was xonconsidered to have a $7-$year remaining life with no salvage value. Carter also held a copy right with a $5-$year remaining life on its books that was undervalued by $$642,500.$ Any remaining excess cost was attributed to an indefinite $-$lived trademark. Delrepreciation and amirortization are computed using the straight $-$line method. Burrough apples the equity method for it investment in Carter

Carter's policy is to declare and pay a $$1$ per share cash dividend every April$1$ and October $1.$

Carter's income, earned evenly throughout each year, was $$578,000$ in $2022,$ $$603,400$ in $2023$ and $$666,600$ in $2024.$

In addition

Burrough sold inventory costing $$106,200$ to Carter for $$177,000$ during $2023.$ Carter resold $$114,000$ of this inventory during $2023$ and the remaining $63,000$ in $2024.$

a$.$ Determine the equity income to be recognized by Burrough during each iof thethese years

b$.$ Compute Burrough's investment in Carter Company's balance as of December $31,2024.$

a$.$ Equity income in $2022$

a Equity income in $2023$

a Equity income in $2024$

b$.$ Investment in Carter