Flounder 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 furyds avaliable for outside imvestment. Over the years, Flounder has had a policy of investing idle cash in equity securities. In particular. Flounder has made periodic investments in the company's principal vendor of mining equipment. Norton Industries. Athough the firm currently owns 12% of the outstanding common stock of Norton Industries. Flounder does not have significant influence over the operations of Norton Industrios. Cheryl Thomas has recently joined Flounder 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 Flounder's pertinent accounts. 1. Flounder has equity securities related to Delaney Motors and Patrick Electric. During 2025, Flounder purchased 99,000 shares of Delaney Motors for $1,485,000 : these shares currently have a fair value of $1,600,000. Flounder imvestment in Patrick Electrichas not been profitable; the company acquired 52.000 shares of Patrickin April 2025 at $21 per share, a purchase that currently has a value of $714,000. 2. Prior to 2025. Flounder invested \$2,2,505,000 in Norton industries and has not changed its holdings this year, This investment in Norton industries was valued at $21,381,000 on December 31,2024 . Flounder' 12% ownership of Norton Industries has a cuerent fair value of $22,369,000 on December 31.2025. (a) Prepare the appropriate adjuting entries for Flounder at of December 31,2025 , toreflect the application of the "fair value" nule: for the securities described a bove. (List debit entry before credit entry Credit ecoount tieles are automatically indented when ambunt is entered, Do not indent manuolly. If no entry is mquired, select "No Entry' for the occount fities and enter O for the amounts)