$\backslash (\backslash$$ $19,200\backslash ).$ Eagle management decides that the decline is other$-$than$-$temporary because Finch lost a patent protection suit during the year and can no longer profit from some of its products.

a$.$ Record the journal entry on December $31$ to recognize the impairment.

Note: If a journal entry isn't required for the transaction, select $"$N$/$A$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Date & Account Name & Dr$.$ & Cr$.\backslash \backslash$

$\backslash$hline Dec. $31$ & $\backslash (\backslash$hat$\{*\}\backslash )$ & $0$ & $0\backslash \backslash$

$\backslash$hline & $-$ & $0$ & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

b$.$ What is the adjusted cost basis of the equity investment on December $31?$

Investment adjusted cost basis, Dec. $31\backslash$$ $0$

c$.$ Assume that the fair value of the investment is $\backslash (\backslash$$ $21,600\backslash )$ on December $31$ of the following year. Record the applicable journal entry.

Note: If a journal entry isn't required for the transaction, select $"$N$/$A$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline Date & Account Name & Dr$.$ & Cr$.\backslash \backslash$

$\backslash$hline Dec. $31$ & $\backslash (\backslash$hat$\{\backslash$sim$\}\backslash )$ & $0$ & $0\backslash \backslash$

$\backslash$hline & $\backslash (\backslash$hat$\{*\}\backslash )$ & $0$ & $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$