An investor owns $25\%$ of an investee, and accounts for its investment using the equity method. At the beginning of the year, the Equity Investment was reported on the investor's balance sheet at $$2,000,000.$ During the year, the investee reported net income of $$800,000$ and paid dividends of $$200,000.$ In addition, the investor sold inventory to the investee, realizing a gross profit of $$240,000$ on the sale. At the end of the year, $30\%$ of the inventory remained unsold by the investee.

a$.$ Provide the equity method journal entries required for the year

b$.$ What is the balance of the Equity Investment at the end of the year?

c$.$ Assume that the inventories are all sold in the following year, that the investee reports $$900,000$ of net income. How much equity income will the investor report for the following year?