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On Jan. 1, 2015, ABC Co. acquired as a long-term investment for P1.4M,a 40% interest in DEF Co.
when the fair value off DEF’s net asset was P3.5M. DEF reported the following net losses:
2015 1M
2016 1.4M
2017 1.6M
2018, 800,000
On January 1, 2017, ABC made cash advances of P400,000 to Mate. On Dec. 31, 2018, it is not
expected that ABC will provide further support for DEF.
What amount should Sole report in 2018 as loss from investment?
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