Sheridan James Inc. acquired $20\%$ of the outstanding common stock of Theresa Blossom Inc. on December $31,2025.$ The purchase

price was $$1,212,000$ for $50,500$ shares. Blossom Inc. declared and paid an $$0\mathrm{.}75$ pershare cash dividend on June $30$ and on

December $31,2026.$ Blossom reported net income of $$730,000$ for $2026.$ The fair value of Blossom's stock was $$27$ per share at

December $31,2026.$ Assume that the security is a trading security.