Novak 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, Novak has had a policy of investing idle cash in equity securities$.$ In particular, Novak 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, Novak does not have significant influence over the operations of Norton Industries.

Cheryl Thomas has recently joined Novak as assistant controller, and her first assignment is to prepare the December $31,2025$ yearend adjusting entries for the accounts that are valued by the "fair value" rule for financial reporting purposes. Thomas has gathered the following information about Novak's pertinent accounts.

Novak has equity securities related to Delaney Motors and Patrick Electric. During $2025,$ Novak purchased $91,000$ shares of Delaney Motors for $$1,365,000$; these shares currently have a fair value of $$1,579,000.$ Novak' investment in Patrick Electric has not been profitable; the company acquired $51,000$ shares of Patrick in April $2025$ at $$19$ per share, a purchase that currently has a value of $$698,000.$

Prior to $2025,$ Novak invested $$22,672,000$ in Norton Industries and has not changed its holdings this year. This investment in Norton Industries was valued at $$21,676,000$ on December $31,2024.$ Novak' $12\%$ owinership of Norton Industries has a current fair value of $$22,161,000$ on December $31,2025.$