FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Sunland Corporation has an investment in corporate bonds classified as available-for-sale at December 31, 2025. These bonds have a
par value of $466,000, an amortized cost of $466,000, and a fair value of $388,000. The company believes that impairment
accounting is now appropriate for these bonds because the expected credit loss on the bonds is $93,000.
(a)
Prepare the journal entry to recognize the impairment. (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 debit entry before
credit entry.)
Account Titles and Explanation
Debit
Credit
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