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Wildhorse, Inc. acquired 40% of Ayayai Corporation's voting stock on January 1,2025...

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Accounting

Wildhorse, Inc. acquired 40% of Ayayai Corporation's voting stock on January 1,2025 for
$970000. In 2025, Ayayai earned $391000 and paid dividends of $244000. Wildhorse's 40%
interest in Ayayai gives Wildhorse the ability to exercise significant influence over Ayayai's
operating and financial policies. In 2026, Ayayai earned $491000 and paid cash dividends of
$144000 on April 1 and $144000 on October 1. On July 1,2026, Wildhorse sold half of its stock in
Ayayai for $651000 cash. The carrying amount of this investment reported in Wildhorse's
December 31,2025 balance sheet is

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