Mulligan Company carries an equity investment of a privately held company. Mulligan elected to measure this equity security without a readily determinable fair value at adjusted cost. The current carrying value of the equity shares is equal to $326,400. Mulligan uses market comparables to estimate the current fair value of the investment at $315,000. A qualitative assessment indicates that impairment does exist.

Required

a. If impairment exists, what amount of loss will Mulligan report in net income? What amount of loss will it report in other comprehensive income?

b. What is the journal entry for the impairment loss if needed?