Daniel Blossom is the sole shareholder of Blossom Inc., which is currently under bankruptcy court protection. As a debtor in possession, he has negotiated a revised loan agreement with United Bank. Blossom Inc.'s $444,000, 10-year, 8% note issued at par was refinanced with a $444,000, 10-year, 4% note. Assume the market rate of interest is 8% at the refinancing date. Both Blossom and United Bank prepare financial statements in accordance with IFRS 9. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (b) Prepare the journal entries to record this refinancing (1) on the books of Blossom and (2) on the books of United Bank. Assume for simplicity that United Bank had not previously recognized any impairment, although under the expected loss method it is likely that it would have recognized some loss. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Markel Inc. has bonds outstanding during a year in which the general (risk-free) rate of interest has not changed. Markel elected the fair value option for the bonds upon issuance. What will the company report for the bonds in its income statement for the year?

Stewart Enterprises has the following investments, all purchased prior to 2021: Stewart does not intend to sell any of these investments and does not believe it is more likely than not that it will have to sell any of the bond investments before fair value recovers. Required: For each investment, Prepare the appropriate adjusting journal entries to account for each investment for 2021 and 2022. 1. Bee Company 5% bonds, purchased at face value, with an amortized cost of $4,160,000, and classified as held to maturity. At December 31, 2021, the Bee investment had a fair value of $3,540,000, and Stewart calculated that $320,000 of the fair value decline is a credit loss and $300,000 is a noncredit loss. At December 31, 2022, the Bee investment had a fair value of $3,740,000, and Stewart calculated that $180,000 of the difference between fair value and amortized cost was a credit loss and $240,000 was a noncredit loss. 2. Oliver Corporation 4% bonds, purchased at face value, with an…

12. Seco Corp. was forced into bankruptcy and is in the process of liquidating assets and paying claims. Unsecured claims will be paid at the rate of forty cents on the dollar. Hale holds a $30,000 noninterest- bearing note receivable from Seco collateralized by an asset with a book value of $35,000 and a liquidation value of $5,000. The amount to be realized by Hale on this note is a. $5,000 b. $12,000 c. $15,000 d. $17,000