16.

Sunland 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 imvestment. Over the years, Sunland has had a policy of investing idle cash in equity securities, In particular, Sunland bas made periodic investments in the company's principal vendor of mining equipenent. Norton Industries. Although the firm currently owns 12% of the outstanding common stock of Norton industries, Sunland does not have significant influence over the operations of Norton Industries. Cheryl Thomas has recently joined Sunland as assistant controller, and her first assignment is to prepare the December 31,2025 yearend adjusting entries for the accounts that are valued by the "fair value' rule for financial reporting purposes. Thomas has gathered the following information about Sunland's pertinent accounts. 1. Sunland has equity securities related to Delaney Motors and Patrick Electric. During 2025, Sunland purchased 104,000 shares of Delaney Motors for $1,352,000; these shares currently have a fair value of $1,646,000. Sunland investment in Patrick Electric has not been profitable; the company acquired 47,000 shares of Patrick in April 2025 at $21 per share, a purchase that currently has a value of $703,000. 2. Prior to 2025, Sunland invested $22,359,000 in Norton Industries and has not changed its holdings this year. This investment in Norton Industries was valued at $21,462,000 on December 31,2024. Sunland' 12% ownership of Norton Industries has a current fair value of $22,095,000 on December 31,2025