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2. Bloom does not plan to sell the Taylor bonds prior to maturity, and does not believe it is more likely than not that it
2. Bloom does not plan to sell the Taylor bonds prior to maturity, and does not believe it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their fair value. Of the $400,000 decline in fair value, Bloom attributes $250,000 to credit losses, and $150,000 to noncredit losses. Required: Prepare appropriate entry(s) at December 31, 2021, and indicate how the scenario will affect the 2021 income statement (Ignoring income taxes). Complete this question by entering your answers in the tabs below. General Journal Income Statement Indicate how the scenario will affect the 2021 income statement (Ignoring income taxes). (Amounts to be deducted should be indicated with a minus sign.) Scenario 1 Effect Scenario 2 Effect Income statement $ 400,000 $ (400,000)
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