17-18

open ASSignment INERT Exercise 17-18 Kingbird Corporation has municpal bonds classned as a held to maturity at December J1, 2017. These bonds have a par value of $730,000, an amortized tost of s730.000, and a fair value of s6sJ,000, The company believes that impairment accounting is now appropriate for these bonds. Prepare the journal entry to recognize the impairment. (cred t account titles are automatically indented when amount As entered. Do not indent manually. Ir no entry is required select "No Entry" for the account titles and entero for the amounts.) Titles and Explanation record the impairment) What is the new cost basis of the municipal bonds? New cost basis of the municipal bonds s Given that the maturity value or the bonds is s730,000, should Kingbird Corporation amortize the dinerence between the camy ng amount and the maturity value over the life of the bonds