Malia Industries owned the following equity investments as of December 31, 20Y3:

Each of the preceding equity investments was purchased in 20Y3 and is less than 20% ownership of the issuing company. During 20Y4, Malia Industries did not purchase or sell any of the equity securities. The fair value of the equity securities as of December 31, 20Y4, was as follows:

a. What was the balance of Valuation Allowance for Equity Investments as of December 31, 20Y3?
b. Journalize the adjustment to fair value for the equity investments as of December 31, 20Y4.
c. After the adjustment in (b), what is the balance of Valuation Allowance for Equity Investments?
d. Does the change in fair value of the equity securities in 20Y4 affect Malia Industries’ net income?

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Issuing Company Cost Fair Value $ 75,000 50,000 25,000 Jolliff Co. $ 82,500 Polich Inc. 48,300 Shaklee Corporation 27,700 $150,000 $158,500