Blanco Company purchased $200$ of the $1,000$ outstanding shares of Darby Company's common stock for $$600,000$ on January $2,2025.$ In $2025,$ Darby declared dividends of $$100,000$ and reported earnings of $$400,000.$ If Blanco uses the fair value method of accounting for its investment in Darby, the balance in Equity Investments $($Darby$)$ on December $31,2025$ should be

a$.$ $$580,000.$

b$.$ $$660,000$

c$.$ $$600,000.$

d$.$ $$680,000.$

Ziegler Corporation purchased $25,000$ shares of common stock of the Sherman Corporation for $$40$ per share on January $2,2024.$ Sherman had $100,000$ shares of common stock outstanding and paid cash dividends of $$150,000$ and reported net income of $$500,000$ in $2025.$ Ziegler should report investment income for $2025$ of

a$.$ $$37,500.$

b$.$ $$87,500.$

c$.$ $$125,000.$

d$.$ $$137,500.$

In $2024,$ Woods Company purchased $80,000$ shares of Holmes Corporation common stock for $$1,260,000$ as an equity investment. The fair value of these shares was $$1,200,000$ at December $31,2024.$ Woods sold all of the Holmes stock for $$17$ per share on December $3,2025,$ incurring $$56,000$ in brokerage commissions. Woods Company should report a realized gain on the sale of stock in $2025$ of

a$.$ $$44,000.$

b$.$ $$100,000.$

c$.$ $$104,000.$

d$.$ $$160,000.$