The Rihanna Company owns 1,000 shares in Abhay Corp, a public company listed on the stock exchange. The share price was as follows: - At date of purchase, July 2, 2021 - $100/share - At year end, June 30, 2022 = $100/share - At start of next fiscal year, July 1, 2022 = $95/share - At date financial statements authorized for issue, September 1, 2022 = $90/share Materiality for the Rihanna's financial statements is $500,000. What is the appropriate treatment of the subsequent event in the June 30, 2022 financial statements? Adjustment in the financial statement for the decline in value of $10,000. Note disclosure in the financial statements for the decline in value of $5,000. No adjustment is needed for the subsequent decline in share price to $90/share. Both an adjustment and note disclosure in the financial statements for the decline to $90/share