Perry Corporation has the following information for its portfolio of trading securities at the end of the past four years:

Required:
1. Prepare the journal entries, if necessary, to adjust the allowance account at the end of 2007, 2008, and 2009.
2. What is the income statement effect of the 2009 entry?
3. How would your answer to 2 change if this was an available-for-saleportfolio?

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Date Portfolio Cost Portfolio Market Value 12/31/06 $162,300 12/31/07 12/31/08 12/31/09 109,600 148,900 139,000 $153,800 106,200 151,300 138,700