Refer to the information in Brief Exercise 14-34 except now assume that the company intends to sell the AFS securities. Determine the amount of impairment loss (if any) to record in income under the three separate scenarios.

Exercise 14-34

Determine the amount of impairment loss (if any) to record in income under the following three separate scenarios for an AFS debt investment. In all three cases, the company does not intend to sell and does not believe it is more likely than not that it will be required to sell the investment before recovery of any unrealized loss. Assume that the company has already adjusted the AFS investments to fair value through OCI.

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Scenario 2 3 Fair value $90,000 $70,000 $60,000 Amortized cost 80,000 80,000 80,000 Expected credit loss 15,000 15,000 15,000