Tamarisk Corp. is a medium$-$sized corporation specializing in constructing high end retail establishments. The company has long dominated the market on the west coast, at one time achieving a $60\%$ 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, Tamarisk has had a policy of investing idle cash in equity securities$.$ In particular, Tamarisk has made periodic investments in the company's principal supplier, Sandhill Industries. Although the firm currently owns $14\%$ of the outstanding common stock of Sandhill Industries, Tamarisk does not have significant influence over the operations of Sandhill Industries.

Dorothy Taylor has recently joined Tamarisk as assistant controller, and her first assignment is to prepare the $2025$ year$-$end adjusting entries for the accounts that are valued by the "fair value" rule for financial reporting purposes. Taylor has gathered the following information about Tamarisk's pertinent accounts.

Tamarisk has equity securities related to LA Mixture and Hollywood Hills. During this fiscal year, Tamarisk purchased $200,000$ shares of LA Mixture for $$3,400,000$; these shares currently have a value of $$3,600,000.$ Tamarisk's investment in Hollywood Hills has not been profitable; the company acquired $80,000$ shares of Hollywood in April $2025$ at $$24$ per share, a purchase that currently has a value of $$1,500,000.$

Prior to $2025,$ Tamarisk invested $$36,930,000$ in Sandhill Industries and has not changed its holdings this year. This investment in Sandhill Industries was valued at $$35,380,000$ on December $31,2024.$ Tamarisk's $14\%$ ownership of Sandhill Industries has a current value of $$37,300,000.$