1. Determine the unadjusted book value
2. Determine the required EB such that the Net Book Value Fair Value on the balance sheet date
3. Make the appropriate adjustment to the valuation allowance (debit or credit -not both).

Fair Value of Asset on Balance Sheet date			$52,000
Net Book Value of Asset before adjustment			$56,000
Book Value before adjustment			???
		Debit	Credit
BB Valuation Account (from prior period)			$2,000
Adjustment Required		???	???
Desired EB			???