Martinez Corp. was a 30\% owner of Sandhill Company, holding 216,000 shares of Sandhill's common stock on December 31,2019. The investment account had the following entries. On January 2, 2020, Martinez sold 108,000 shares of Sandhill for $3.590,000, thereby losing its significant influence. During the year 2020 , Sandhill experienced the following results of operations and paid the following dividends to Martinez. At December 31, 2020, the fair value of Sandhill shares held by Martinez is $1,970,000. This is the first reporting date since the January 2 sale. (b) Compute the carrying amount of the investment in Sandhall as of December 31,2020 (prior to any fair value adjustment). Carrying amount (c) Prepare the adjusting entry on December 31,2020, applying the fair value method to Martinez's long-term investment in 5andhill Company securities. (Credit occount titles are cutomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts.)