Mulligan Company holds an available- for- sale equity investment with a carrying value of $ 326,400. The current fair value of the investment is $ 315,000. Mulligan establishes that there is objective evidence of impairment and expects the impairment to be other than temporary.
Required
a. Does impairment exist? If so, is it other than temporary?
b. If impairment exists, what amount of loss will Mulligan report in net income? What amount of loss will it report in other comprehensive income?
c. What is the journal entry for the impairment loss, if needed?