$($P$01)$

ABC Ltd$.$ acquired $30\%$ of XYZ Corp.$$s outstanding shares on January $1,202$x$,$ for $$300,000.$ During $202$X$,$ XYZ Corp. reported a net income of $$200,000$ and paid dividends of $$50,000.$

Calculate the share of net income that ABC Ltd$.$ should recognize in $202$X$.$

Determine the carrying amount of the investment at the end of $202$X$.$

Prepare the journal entries to record the acquisition of the investment, the recognition of income, and the receipt of dividends.

Discuss the equity method of accounting for investments and its impact on the investor$$s financial statements.