Pronghorn Corp. is a medium$-$sized corporation specializing in quarrying stone for building construction. The company has long dominated the market, at one time achieving a $70\%$ market

penetration. During prosperous years, the company's profits, coupled with a conservative dividend policy, resulted in funds available for outside investment. Over the years, Pronghorn has

had a policy of investing idle cash in equity securities$.$ In particular, Pronghorn has made periodic investments in the company's principal vendor of mining equipment, Norton Industries.

Although the firm currently owns $12\%$ of the outstanding common stock of Norton Industries, Pronghorn does not have significant influence over the operations of Norton Industries.

Cheryl Thomas has recently joined Pronghorn 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 Pronghorn's pertinent accounts.

Pronghorn has equity securities related to Delaney Motors and Patrick Electric. During $2025,$ Pronghorn purchased $91,000$ shares of Delaney Motors for $$1,456,000$; these

shares currently have a fair value of $$1,632,000.$ Pronghorn' investment in Patrick Electric has not been profitable; the company acquired $52,000$ shares of Patrick in April $2025$ at

$$21$ per share, a purchase that currently has a value of $$753,000.$

$$21,694,000$ on December $31,2024.$ Pronghorn' $12\%$ ownership of Norton Industries has a current fair value of $$22,240,000$ on December $31,2025.$