Sage Corp. is a medium-sized corporation specializing in quarrying stone for building construction. The company has long dominated the market, at one time achieving a 70% market penetration. During prosperous years, the company's profits, coupled with a conservative dividend policy, resulted in funds available for outside investment. Over the years, Sage has had a policy of investing idle cash in equity securities. In particular, Sage has made periodic investments in the company's principal supplier, Norton Industries. Although the firm currently owns 12% of the outstanding common stock of Norton Industries, Sage does not have significant influence over the operations of Norton Industries. Cheryl Thomas has recently joined Sage as assistant controller, and her first assignment is to prepare the 2020 year-end adjusting entries for the accounts that are valued by the "fair value" rule for financial reporting purposes. Thomas has gathered the following information about Sage pertinent accounts. 1. 2. Sage has equity securities related to Delaney Motors and Patrick Electric. During 2020, Sage purchased 101,000 shares of Delaney Motors for $1,384,000; these shares currently have a fair value of $1,540,000. Sage' investment in Patrick Electric has not been profitable; the company acquired 52,000 shares of Patrick in April 2020 at $20 per share, a purchase that currently has a value of $720,000. Prior to 2020, Sage invested $22,465,000 in Norton Industries and has not changed its holdings this year. This investment in Norton Industries was valued at $21,372,000 on December 31, 2019. Sage 12% ownership of Norton Industries has a current fair value of $22,387,000 on December 2020.