Kingbird Donald Inc. acquired $20\%$ of the outstanding common stock of Theresa Ivanhoe Inc. on December $31,2025.$ The purchase

price was $$1,205,000$ for $48,200$ shares. Ivanhoe Inc. declared and paid an $$0\mathrm{.}85$ per share cash dividend on June $30$ and on December

$31,2026.$ Ivanhoe reported net income of $$692,000$ for $2026.$ The fair value of Ivanhoe's stock was $$28$ per share at December $31,$

Assume that the security is a trading security.

$($a$)$

Prepare the journal entries for Kingbird Donald Inc. for $2025$ and $2026,$ assuming that Donald cannot exercise significant

influence over Ivanhoe. $($List all debit entries before credit entries. 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. Record journal

entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit