Konica Company Acquires 40% of the Voting Stock of Lexmark

Konica Company acquires 40% of the voting stock of Lexmark Corporation on January 1, 2017, for $60,000,000, and treats it as an equity method investment. There were no basis differences. Lexmark reports total net income of $20,000,000 for the period 2017 - 2020, and $5,000,000 for 2021. Lexmark paid no dividends during the period 2017 - 2020 but paid $1,000,000 in dividends in 2021. The accounting year for both companies ends December 31. Lexmark sells merchandise to Konica at a markup of 30% on cost. The inventory balances held by Konica, purchased from Lexmark, are as follows.
$$\begin{array} { | l | c | } \hline { \text { Inventory Held by Konica; Purchased from Lexmark } } \\\hline \text { December } 31,2020 & \$ 1,560,000 \\\hline \text { December } 31,2021 & 2,600,000 \\\hline\end{array}$$ Required a. Calculate equity in net income of Lexmark, reported on Konica's 2021 income statement.
b. Calculate investment in Lexmark, reported on Konica's December 31, 2021 balance sheet.