Presented below are three unrelated situations involving equity investments.
A debt investment portfolio, whose fair value is currently less than cost, is classified as trading but is to be reclassified as held-for-collection.
A debt investment portfolio with an aggregate fair value in excess of cost includes one particular debt investment whose fair value has declined to less than one-half of the original cost. The decline in value is considered to be permanent.
The portfolio of trading equity investments has a cost in excess of fair value of $13,500. The portfolio of non-trading equity investments has a fair value in excess of cost of $28,600.
What is the effect upon carrying value and earnings for each of the situations above?