For 25-26: Judicious Company acquired an equity investment a number of years ago for P 3,000,000 and classified it as fair value through other comprehensive income. On December 31, 2020, the cumulative loss recognized in other comprehensive income was P 400,000 and the carrying amount of the investment was P 2,600,000. On December 31, 2021, the issuer of the equity instrument was in sever financial difficulty and the fair value of the equity investment had fallen to P 1,200,000. 25: What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2021? 26: prepare journal entry to recognize the decrease in value on December 31, 2021.
For 25-26: Judicious Company acquired an equity investment a number of years ago for P 3,000,000 and classified it as fair value through other comprehensive income. On December 31, 2020, the cumulative loss recognized in other comprehensive income was P 400,000 and the carrying amount of the investment was P 2,600,000. On December 31, 2021, the issuer of the equity instrument was in sever financial difficulty and the fair value of the equity investment had fallen to P 1,200,000. 25: What cumulative amount of unrealized loss should be reported as component of other comprehensive income in the statement of changes in equity for the year ended December 31, 2021? 26: prepare journal entry to recognize the decrease in value on December 31, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:For 25 - 26:
Judicious Company acquired an equity investment a number of years ago for P 3,000,000 and classified it as fair value
through other comprehensive income.
On December 31, 2020, the cumulative loss recognized in other comprehensive income was P 400,000 and the carrying
amount of the investment was P 2,600,000.
On December 31, 2021, the issuer of the equity instrument was in sever financial difficulty and the fair value of the
equity investment had fallen to P 1,200,000.
25: What cumulative amount of unrealized loss should be reported as component of other
comprehensive income in the statement of changes in equity for the year ended December 31, 2021?
26: prepare journal entry to recognize the decrease in value on December 31, 2021.
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