#9 (1 of 2 pages) Sky Company has several investments in the securities of other companies. The following information regarding these investments is available at December 31, 2025. Sky holds bonds issued by Berry Corp. The bonds have an amortized cost of $310,000 and their fair value at December 31, 2025, is $400,000. Sky intends to hold the bonds until they mature on December 31, 2033. Sky has invested idle cash in the equity securities of several publicly traded companies. Sky intends to sell these securities during the first quarter of 2026, when it will need the cash to acquire seasonal inventory. These equity securities have a cost basis of $950,000 and a fair value of $1,100,000 at December 31, 2025. Sky purchased 35% of the stock of Cobbler Co. for $980,000. Sky has significant influence over the operating activities of Clobbler Co. During 2025, Clobbler Co. reported net income of $350,000 and paid a dividend of $150,000. #9 (2 of 2 pages) Sky has an ownership stake in one of the companies that supplies Sky with various components Sky uses in its products. Sky owns 5% of the common stock of the supplier, does not have any representation on the supplier's board of directors, does not exchange any personnel with the supplier, and does not consult with the supplier on any of the supplier's operating, financial, or strategic decisions. The cost basis of the investment in the supplier is $1,150,000 and the fair value of the investment at December 31, 2025, is $1,670,000. Sky does not intend to sell the investment in the foreseeable future. The supplier reported net income of $85,000 for 2025 and paid no dividends. Instructions a. Determine how each of the investments described above should be classified and accounted for. b. Prepare any December 31, 2025, journal entries needed for Sky relating to Sky's various investments in other companies. Assume 2025 is Sky's first year of operations.