Final answer:
To determine Burrough's equity income and investment in Carter Company, calculate the present value of payments and use the future value formula.
Step-by-step explanation:
The equity income to be recognized by Burrough during each of these years can be determined by calculating the present value of the payments from Carter Company and subtracting the initial investment. To compute Burrough's investment in Carter Company's balance as of December 31, 2024, you can use the future value formula.
First, calculate the present values of the payments using the given interest rate. Then, add up these present values to find the total investment. Finally, subtract any income recognized in previous years to determine the investment in 2024.