As a long$-$term investment, Fair Company purchased $20\%$ of Midlin Company's $300,000$ shares for $$360,000$ at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $$135,000$ and distributed cash dividends of $$0\mathrm{.}25$ per share. At year$-$end, the fair value of the shares is $$375,000.$

$2.$ Assume significant influence was acquired. Record the transactions from the purchase through the end of the year, including any adjusting entry for the investment$$s fair value, if appropriate.