Assume that an investor owns $20\%$ 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$$s balance sheet at $$480,000.$ During the year, the investee reported net income of $$120,000$ and paid dividends of $$72,000.$ In addition, the investor sold inventory to the investee, realizing a gross profit of $$48,000$ on the sale. At the end of the year, $25\%$ of the inventory remained unsold by the investee.

a$.$ How much equity income should the investor report 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 $$180,000$ of net income. How much equity income will the investor report for the following year?