Headland 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, Headland has had a policy of

investing idle cash in equity securities$.$ In particular, Headland 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,

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

Cheryl Thomas has recently joined Headland 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 Headland's pertinent accounts.

Headland has equity securities related to Delaney Motors and Patrick Electric. During $2025,$ Headland

purchased $98,000$ shares of Delaney Motors for $$1,372,000$; these shares currently have a fair value of $$1,653,000.$

Headland' investment in Patrick Electric has not been profitable; the company acquired $50,000$ shares of Patrick in April

$2025$ at $$21$ per share, a purchase that currently has a value of $$719,000.$

Prior to $2025,$ Headland invested $$22,673,000$ in Norton Industries and has not changed its holdings this

investment in Norton Industries was valued at $$21,700,000$ on December $31,2024.$ Headland' $12\%$ ownership of Norton

Industries has a current fair value of $$22,352,000$ on December $31,2025.$

$($a$)$

Prepare the appropriate adjusting entries for Headland as of December $31,2025,$ to reflect the application of the "fair value" rule

for the securities described above. $($List debit entry before credit entry. Credit account titles are automatically indented when amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$