$.$ Dec. $31$

Cash

$9,600$

$0$

Answer $5$

Investment in Stock

$0$

$9,600$

Answer $6$

To record proportionate share of investee's net income.

Dec. $31$

N$/$A$$debit

$0$

$0$

Answer $7$

N$/$A$$credit

$0$

$0$

Answer $8$

To adjust investment to fair value.

b$.$ Indicate the e$$ects of this investment on Allen$$s income statement and its year$-$end balance sheet $($ignoring any effects on cash$).$

$$ Note: Indicate a loss with a negative sign.

Income Statement, for year ended Dec. $31$

Other Revenue

Answer $9$

Investment Income

Answer $10$

$0$

Balance Sheet, Dec. $31$

Assets

Answer $11$

Investment in Stock

Answer $12$