The adjusting entry on December 31, 2021 would
On December 31, 2020, Hotel Company held 1,000 ordinary shares of Regent Company in its portfolio of long term investments in equity securities. The shares were designated as at fair value through other comprehensive income. The shares had a cost of P150 per share and had a fair value of P130 per share at Dec. 31, 2020. During 2021, Hotel acquired the following investments, all of which were designated as at fair value through other comprehensive income: 900 ordinary shares of Hyatt Co. for P180 per share and 800 ordinary shares of Hilton Co. for P220 per share. At the end of 2021, market values per share were: Regent P140; Hyatt P170; and Hilton P200.
9.The
a.increase unrealized loss by 35,000.
b.increase unrealized loss by 15,000.
c.decrease unrealized loss by 20,000.
c.decrease unrealized loss by 15,000.
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