Presented below is information related to the purchases of common stock by Wildhorse Company during 2025. Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock $90,000 $71,000 Investment in Lee Corporation stock 267,000 318,000 Investment in Woods Inc. stock 195,000 205,000 Total $552,000 $594,000 In addition, assume that the investment in the Woods Inc. stock was sold during 2026 for $210,000. At December 31, 2026, the following information relates to its two remaining investments of common stock. Cost (at purchase date) Fair Value (at December 31) Investment in Arroyo Company stock $90,000 $136,000 Investment in Lee Corporation stock Total 267,000 329,000 $357,000 $465,000 Net income before any security gains and losses for 2026 was $910,000. (a) Compute the amount of net income or net loss that Wildhorse should report for 2026, taking into consideration Wildhorse's security transactions for 2026. Net income or net loss that Wildhorse should report for 2026 $ (b) Prepare the journal entry to record unrealized gain or loss related to the investment in Arroyo Company stock at December 31, 2026. Wildhorse has selected the fair value option for the Arroyo investment. (List debit entry before credit entry. 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 O for the amounts.) Date Account Titles and Explanation Dec. 31, 2026 Debit Credit