1. The Coca-Cola Company "recorded other-than-temporary impairment charges of $406 million related to CCBJHI, an equity method investee …,$255 million related to certain equity method investees in the Middle East ..., $57 million related to [an] equity method investee in North America.. , and $49 million related to [an] equity method investee in Latin America." 
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3. FASB ASC 323-10-35-32 provides the following guidance for other-than-temporary impairment of equity method investments: "A loss in value of an investment that is other than a temporary decline shall be recognized. Evidence of a loss in value might include, but would not necessarily be limited to, absence of an ability to recover the carrying amount of the investment or inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. A current fair value of an investment that is less than its carrying amount may indicate a loss in value of the investment. However, a decline in the quoted market price below the carrying amount or the existence of operating losses is not necessarily indicative of a loss in value that is other than temporary. All are factors that shall be evaluated." 

Questions

1. a. What must have Coca-Cola's managers concluded about the fair value of its equity method investments during 2019 to justify the write-down of these investments? 
2. b. How much judgment is involved in the decision to write down an investment and how might a company use that judgment to manage the level of net income that it reports?