$11.$ During the current year, Davis Company$$s common stock suffers a permanent drop in market

value. In the past, Davis has made a significant portion of its sales to one customer. This buyer

recently announced its decision to make no further purchases from Davis Company, an action that

led to the loss of market value. Hawkins, Inc., owns $35$ percent of the outstanding shares of Davis,

an investment that is recorded according to the equity method. How would the loss in value affect

this investor$$s financial reporting?