Marcy Kringle has recently joined Rodeo as assistant controller, and her first assignment is to prepare the 2025 year-end adjusting entries for the accounts that are valued by the "fair value" rule for financial reporting purposes. Kringle has gathered the following information about Rodeo's pertinent accounts. 1. Rodeo has equity securities related to LA Mixture and Hollywood Hills. During the fiscal year, Rodeo purchased 200,000 shares of LA for $3,460,000; these shares currently have a value of $3,600,000. Rodeo's investment in Hollywood Hills has not been profitable; the company acquired 80,000 shares of Hollywood in April 2025 at $26 per share, a purchase that currently has a value of $1,520,000. 2. Prior to 2025, Rodeo invested $36,600,000 in Driveway Industries and has not changed its holdings this year. This investment in Driveway Industries was valued at $35,350,000 on December 31, 2024. Rodeo's 14% ownership of Driveway Industries has a current value of $37,625,000