Cheryl Thoman has recently Joined brooks as Assistant controller, and her first assignment is to prepare the December $31,2025$ year end adjusting entries for the accounts that are valued by the "Fair value" rule for financial reporting purposes. Thomas has gathered the following information about Brook's pertinent accounts.

$1.$Brooks has equity securities related to Delaney Motors and Patrick Electric. During $2025,$ Brooks purchased $100,000$ shares of Delaney Motors for $$1,400,000$ these shares currently have a fair value of $$1,600,000.$ Brook's investment in Patrick Electric has not been profitable; the company acquired $50,000$ shared of Patrick in April $2025$ at $$20$ per share, a purchase that currently has a value of $$720,000.$

$2.$ Prior to $2025,$ Brooks invested $22,500,000$ in Norton industries and has nkt chnaged its holdings this year. This investment In Norton Industries was valued at $$21,500,000$ on Devenber $31,2024,$ Brooks' $12\%$ ownership of Norton industries has a current fair value of $$22,225,000$ on Decenber $31,2025.$

$($a$)$

pepare the appropriate adjusting entries for Brooks as of December $31,2025,$ te reflect the application of the "fair value" rule for the securities described above

Pleaze answer letter a