Problem $12-7($Algo$)$ Various transactions related to equity investments: fair value through net income; financial statement effects $[$LO$12-5]$

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during $2024.$ The company buys equity securities as noncurrent investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December $31.$ No investments were held by Ornamental on December $31,2023.$

March $31$ Acquired Distribution Transformers Corporation common stock for $$600,000.$

September $1$ Acquired $$1,200,000$ of American Instruments' common stock.

September $30$ Received a $$15,000$ dividend on the DistributionGransformers common stock.

October $2$ Sold the Distribution Transformers common stock for $$645,000.$

November $1$ Purchased $$1,600,000$ of M&D Corporation common stock.

December $31$ Recorded any necessary adjusting entry$($s$)$ relating to the investments. The market prices of the investments are:

American Instruments common stock $$1,130,000$

$\frac{M}{\text{\&}}D$ Corporation common stock $$1,680,000$

Required:

Prepare the appropriate journal entry for each transaction or event during $2024,$ as well as any adjusting entries necessary at year end.

Indicate any amounts that Ornamental Insulation would report in its $2024$ income statement, $2024$ statement of comprehensive income, and $12/31/2024$ balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. Ignore income taxes.

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