Using the equity method and fair value option

Ford bought $40\%$ of Tesla's outstanding common stock on January $2,2022,$ for

$$22,000,000.$ The carrying amount $($ie: book value$)$ of Tesla's net assets at the

purchase date totaled $$30,000,000.$ Fair values and carrying amounts $($ie: book

value$)$ were the same for all items except for the manufacturing plant and inventory,

for which fair values exceeded the carrying amounts by $$9,000,000$ and $$1,000,000,$

respectively. The manufacturing plant has an $18-$year remaining life. All inventory

on hand at the beginning of the year was sold during $2022.$ During $2022,$ Tesla

reported $$2,500,000$ net income and paid a $$200,000$ cash dividend.

Required:

What amount should Ford report in its income statement related to its

investment in Tesla for the year ended December $31,2022?$ Show all your

calculations.

What is the December $31,2022,$ balance in Ford's Investment in Tesla account?

Show all your calculations.

Assume that on January $2,2022,$ when Ford acquired a $40\%$ interest in Tesla,

but determined it did not have significant influence, so accounted for the

investment using the fair value option. If the fair value of Ford's investment in

Tesla is $$21,500,000$ on December $31,2022,$ what amount should Ford report

in its $2022$ income statement for this investment under the fair value option?

Show all calculations.

$***$Side note: Please explain how dividends is accounted for, is it subtracted from the total net income or Ford's portion of net income? Why?$***$