Presented below is information related to the purchases of common stock by Monty 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 $267,000318,000$

Investment in Woods Inc. stock $195,000205,000$

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 $267,000318,000$

Total $$357,000$ $$454,000$

Net income before any security gains and losses for $2026$ was $$910,000.$

$($a$)$ Compute the amount of net income or net loss that Monty should report for $2026,$ taking into consideration Monty$$s security transactions for $2026.$

Net income or net loss that Monty should report for $2026$ $enter the amount of net income or net loss in dollars

$($b$)$ Prepare the journal entry to record unrealized gain or loss related to the investment in Arroyo Company stock at December $31,2026.$ Monty 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 $0$ for the amounts.$)$

Date Account Titles and Explanation Debit Credit

Dec. $31,2026$ enter an account title for the journal entry on December $31,2026$ enter a debit amount enter a credit amount

enter an account title for the journal entry on December $31,2026$ enter a debit amount enter a credit amount

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