The following information was extracted from the December 31, 2020, balance sheets of four different companies:

There were no transactions in equity securities during 2021, and as of December 31, 2021, the controllers of each company collected the following information:

a. Compute the change in the asset short-term equity investments due to the market value changes.
b. Compute the effect on 2021 reported income for each of the four companies due to the market value changes in their equity investments.
c. Explain why the answers to (a) and (b) are the same.

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Wearever Fabrics Frames Corp. Pacific Transport Video Magic Short-term equity investments $800,000 $490,000 $645,000 $210,000