Brooks 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, Brooks has had a policy of investing

idle cash in equity securities$.$ In particular, Brooks 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, Brooks

does not have significant influence over the operations of Norton Industries.

Cheryl Thomas has recently joined Brooks as assistant controller, and her first assignment is to prepare the $2025$ 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 Brooks' pertinent accounts.

Brooks has equity securities related to Delaney Motors and Patrick Electric. During $2025,$ Brooks purchased $100,000$ shares

of Delaney Motors for $$1,400,000$; these shares currently have a fair value of $$1,600,000.$ Brooks' investment in Patrick

Electric has not been profitable; the company acquired $50,000$ shares of Patrick in April $2025$ at $$20$ per share, a purchase

that currently has a value of $$720,000.$

Prior to $2025,$ Brooks invested $$22,500,000$ in Norton Industries and has not changed its holdings this year. This investment

in Norton Industries was valued at $$21,500,000$ on December $31,2024.$ Brooks' $12\%$ ownership of Norton Industries has a

current fair value of $$22,225,000$ on December $2025.$

$($b$)$

For both classes of securities presented above, describe how the results of the valuation adjustments made to reflect the application of

the "fair value" rule would be reflected in the body of Brooks' $2025$ financial statements.