Concord Corporation owns corporate bonds at December 31, 2023, accounted for using the amortized cost model. These bonds have a par value of $992,000 and an amortized cost of $ 977,000. After an impairment review was triggered, Concord determined that the discounted impaired cash flows are $914,500 using the current market rate of interest, but are $910,000 using the market rate when the bonds were first acquired. The compary follows a policy of directly reducing the carrying amount of any impaired assets. Assume that no impairment loss had been recorded earlier. (a1) Assuming Concord is a private enterprise that applies ASPE, prepare the journal entry related to the impairment at December 31, 2023.

Concord Corporation owns corporate bonds at December 31, 2023, accounted for using the amortized cost model. These bonds have a par value of $992,000 and an amortized cost of $ 977,000. After an impairment review was triggered, Concord determined that the discounted impaired cash flows are $914,500 using the current market rate of interest, but are $910,000 using the market rate when the bonds were first acquired. The compary follows a policy of directly reducing the carrying amount of any impaired assets. Assume that no impairment loss had been recorded earlier. (a1) Assuming Concord is a private enterprise that applies ASPE, prepare the journal entry related to the impairment at December 31, 2023.

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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