Income Recognition from Joint Venture Under Equity Method

ABC Corporation and XYZ Ltd. formed a joint venture called Tech Innovations to develop new software applications. Each company contributed an equal amount of capital and agreed to share profits equally. The terms of their agreement state that ABC Corporation will oversee project management and software development, while XYZ Ltd. will handle marketing and distribution.

At the year-end, the joint venture reported a net income of $2 million. Assuming that ABC Corporation uses the equity method to account for its investment in Tech Innovations, how much should ABC Corporation recognize as income from the joint venture in its financial statements for the year?