P $12-7$ Various transactions related to equity investments: fair value through net income; financial statement effects $S$ LO$12-5$

$[$This problem is a variation of $P12-5,$ modified to consider equity investments.$]$

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during $2024.$ The company buys equity securities as noncurrent investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December $31.$ No investments were held by Ornamental on December $31,2023.$

Mar. $31$ Acquired Distribution Transformers Corporation common stock for $$400,000.$

Sep. $1$ Acquired $$900,000$ of American Instruments' common stock.

Sep. $30$ Received a $$16,000$ dividend on the Distribution Transformers common stock.

Oct. $2$ Sold the Distribution Transformers common stock for $$425,000.$

Nov. $1$ Purchased $$1,400,000$ of M&D Corporation common stock.

Dec. $31$ Recorded any necessary adjusting entry$($s$)$ relating to the investments. The market prices of the investments are:

American Instruments common stock

M&D Corporation common stock $$850,000$

$$1,460,000$

Required:

Prepare the appropriate journal entry for each transaction or event during $2024,$ as well as any adjusting entry necessary at yearend.

Indicate any amounts that Ornamental Insulation would report in its $2024$ income statement, $2024$ statement of comprehensive income, and $\frac{12}{31}\frac{?}{2024}$ balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. Ignore income taxes.