Mallik Ltd. purchased 30,000 shares or 25% of Lee Chan Inc.’ s shares on January 1, 20X8, for $ 300,000 and classified the investment as a fair value through OCI investment. Lee Chan Inc. reported a loss of $(100,000) in 20X8, and a profit of $ 200,000 in 20X9, and paid dividends of $ 50,000 in 20X8 and $ 25,000 in 20X9. On December 31, 20X8, 50% of the $ 100,000 worth of goods sold by Lee Chan to Mallik in 20X8 still remained in Mallik’s ending inventory. Lee Chan’s gross margin is 50%. Lee Chan’s shares traded at $ 15 per share on December 31, 20X8, and January 1, 20X9.
On January 1, 20X9, Mallik obtained significant influence over the operating and invest-ing decisions of Lee Chan when the controlling shareholder sold some shares in Lee Chan in the open market. Accordingly, the investment in Lee Chan was reclassified by Mallik to a significant- influence investment. On January 1, 20X9, Lee Chan’s shareholders’ equity was $ 1,500,000, Lee Chan had inventory that was overvalued by $ 100,000, and the balance of the FVI was allocated to a building that had a remaining useful life of 10 years.
Mallik sold the inventory purchased from Lee Chan in 20X8 by the end of 20X9. However, $ 50,000 worth of inventory purchased by Mallik from Lee Chan during 20X9 remained in its ending inventory at the end of 20X9. Lee Chan’s gross profit ratio continued to be 50% in 20X9 as well.
On December 31, 20X9, Mallik sold its investment in Lee Chan for $ 12 per share.

Required
Prepare all journal entries relating to Mallik’s investment in Lee Chan chronologically by date for 20X8 and 20X9. Show all supporting calculations.