The investment portfolio of Morris INC. on December 31, 2014 contains the following securities:

- Opus. Co. Common 3% ownership, 5,000 shares; cost, $100,000; fair value, $95,000 classified as a trading security

- Garrod Inc. preferred, 2,000 shares; cost, $40,000; fair value, $43,000 classified as a trading security.

- Sherrill Inc. common, 30% ownership, 20,000 shares; cost, $1,140,000; fair value, $1,130,000; classified as an influencing investment.

- Jennings Co. common, 15% ownership, 25,000 shares; cost, $67,500; fair value, $50,000; classified as an available for sale security

1. Give the valuation adjustment required at December 31, 2014, assuming that all investments were purchased in 2014 and none of the indicated declines in fair value are considered other than temporary

2. Assume that the Jesnnings Co's common stock market decline is considered other than temporary. Give the valuation entry required at December 31, 2014, under this change in assumption.

3. Assume that the fair values for the long-term investment portfolio at December 31, 2015 were as follows:

Opus Co. Common ....... $102,000

Garrod Inc preferred ......$43,000

Sherrill Inc Common......$1,115,000

Jennings Co. Common..$45,000

Give the valuation entries at December 31, 2015, assuming that the investment categories remain the same and that all declines in 2014 and 2015 are temporary except for the 2014 decline in Jennings Co. Stock.