P$-$F:$15-24$ Accounting for debt and equity investments

This problem continues the Canyon Canoe Company situation from Chapter F:$14.$ Amber and Zack Wilson are pleased with the growth of their business and have decided to invest its temporary excess cash in a brokerage account. The company had the following securities transactions in $2025.$

Jul. $1$ Purchased $8,000$ shares in Adobe Outdoor Adventure Company for $$3$ per share. Canyon Canoe does not have significant influence over Adobe.

$7$ Purchased $35\%$ of the stock of Bison Backpacks consisting of $43,750$ shares of stock $($out of a total of $125,000$ shares$)$ for $$5$ per share. Canyon Canoe does have significant influence over Bison.

$10$ Purchased a bond from Camelot Canoes with a face value of $$80,000.$ Canyon Canoe intends to hold the bond to maturity. The bond pays interest semiannually on June $30$ and December $31.$

Sep. $30$ Received dividends of $$0\mathrm{.}15$ per share from Adobe.

Nov. $1$ Received dividends of $$0\mathrm{.}30$ per share from Bison.

Dec. $31$ Received an interest payment of $$3,200$ from Camelot Canoes.

$31$ Bison Backpacks reported net income of $$30,000$ for the year. Canyon Canoe Company's share of the net income is $$5,250.$

$31$ Adjusted the Adobe stock for a market value of $$2\mathrm{.}98$ per share.

F$15-31$

Requirements

Journalize the transactions including any entries, if required, at December $31,2025.$

Determine the effect on Canyon Canoe Company's net income for the year for each of the three investments.