Windsor John Inc. acquired $20\%$ of the outstanding common stock of Theresa Crane Inc. on December $31,2025.$ The purchase price was $$1,214,400$ for $52,800$ shares. Crane Inc. declared and paid an $$0\mathrm{.}80$ per share cash dividend on June $30$ and on December $31,2026.$ Crane reported net income of $$768,000$ for $2026.$ The fair value of Crane's stock was $$26$ per share at December $31,2026.$ Assume that the security is a trading security.

$($a$)$

Prepare the journal entries for Windsor John Inc. for $2025$ and $2026,$ assuming that John cannot exercise significant influence over Crane. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem.$)$

Account Titles and Explanation

Debit

Credit