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What amount of loss should Windy Co. recognize on Dec. 31, 20x1 if the shares were classified as:

What amount of loss should Windy Co. recognize on Dec. 31, 20x1 if the shares were classified as:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During 20x1, Windy Co. acquired 10,000 shares of Morning Corp. at P50 per share. Windy Co. paid transaction costs of P25,000 on the acquisition. On Dec. 31,20x1, the fair value of the shares declined to P25 per share. Windy Co. assessed that the decline in fair value will persist over a long period of time. What amount of loss should Windy Co. recognize on Dec. 31, 20x1 if the shares were classified as:

a. FVPL asset: 250,000 P/L ,  FVOCI asset: 275,000 P/L

b. FVPL asset: 250,000 P/L , FVOCI asset: 275,000 OCI

c. FVPL asset: 250,000 P/L , FVOCI asset: 25,000 OCI

d. FVPL asset: 250,000 P/L , FVOCI asset: 0

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