Waterway Inc. owns shares of Wildhorse Corporation stock. At December 31, 2025, the securities were carried in Waterway's accounting records at their cost of $897,000, which equals their fair value. On September 21, 2026, when the fair value of the securities was $1,006,000, Waterway declared a property dividend whereby the Wildhorse securities are to be distributed on October 23, 2026, to stockholders of record on October 8, 2026.

Waterway Inc. owns shares of Wildhorse Corporation stock. At December 31, 2025, the securities were carried in Waterway's accounting records at their cost of $897,000, which equals their fair value. On September 21,2026, when the fair value of the securities was $1,006,000, Waterway declared a property dividend whereby the Wildhorse securities are to be distributed on October 23, 2026, to stockholders of record on October 8,2026. (To record gain or loss) (To record property dividend)