Presented below is information related to the purchases of common stock by Sheridan Company during 2025. Investment in Arroyo Company stock Investment in Lee Corporation stock Investment in Woods Inc. stock (a) Total (b) Cost Fair Value (at purchase date) (at December 31) $70,000 $92,000 241,000 180,000 $513,000 289,000 190,000 (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) $549,000 What entry would Sheridan make at December 31, 2025, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? What entry would Sheridan make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Sheridan did not select the fair value option for these investments?

Presented below is information related to the purchases of common stock by Sheridan Company during 2025. (Assume a zero balance for any Fair Value Adjustment account at the beginning of 2025.) (a) What entry would Sheridan make at December 31,2025 , to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? (b) What entry would Sheridan make at December 31, 2025, to record the investments in the Lee and Woods corporations, assuming that Sheridan did not select the fair value option for these investments