$$ On $\frac{1}{1}\frac{?}{x4},$ Phillip invested $$1,100,000$ in Sleeper's ordinary shares $(35\%$ owned$).$ Sleeper reported:

Assets $$3,500,000$

Liabilities $600,000$

The book value of Sleeper's net assets approximated market value except for the following assets:

Inventory$----$ $$20,000$ overstated,

Equipment $(1/1/$X$2$ purchased$)----$ $$50,000$ understated,

Trademark $-$ $$70,000$ understated

For $20$X$4,$ Sleeper earned $$90,000,$ declared cash dividends of $$60,000,$ and paid dividends of $$40,000.$ Sleeper's inventory always take perpetual, FIFO and Equipment useful life $6$ years, straight line depreciation and no salvage value.

For $20$X$5,$ Sleeper earned $100,000.$

$()$ What amounts does Phillip report for $20$X$4?($Give calculating Process$)$

Cost

Equity

Investment income

Investment in Sleeper at year$-$end

Retained earnings increase $($decrease$)$

Goodwill Recognized

$()$ Calculate and prepare Journal Entries if Philip sold $10\%$ of Sleeper's stocks in $$200,000$ on April $1,2025($Equity Method and Assume Sleeper's earning is evenly$).$