Wildhorse Co$.$ acquired $25\%$ of the $550,000$ shares of outstanding common stock of Sheffield Inc. on December $31,2025.$ The

purchase price was $$4,125,000.$ Sheffield declared and paid $$1\mathrm{.}10$ per share cash dividends on June $18,2026,$ and on November $29,$

Sheffield reported net income of $$1,270,000$ for $2026.$ The fair value of Sheffield common stock was $$27$ per share at December

$31,2026.$

$($a$)$

Prepare the journal entries for Wildhorse Co$.$ for $2026,$ assuming that Wildhorse cannot exercise significant influence over

Sheffield. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required,

select $"$No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the

order presented in the problem.$)$

Date

Dec. $31,2026$

Account Titles and Explanation

Equity Investments

Cash

Debit

Credit