1. A company holds an investment in corporate bonds classified as AFS. At the beginning of 2020, this investment is reported at a value of $4,000,000. Gains of $500,000 have been previously reported, and no impairment losses have been reported. At the end of 2020, the market value of the investment is $2,000,000, and it is determined that the decline in value is due to credit losses.

Using the T-account template below OR using a separate spreadsheet, prepare the entry to recognize the impairment loss.

ASSETS =				LIABILITIES		+ EQUITY
	Non-current Assets
Current Assets	Property, Plant & Equipment	Investments	Intangible Assets/Other	Current Liabilities	Non-Current Liabilities	Contributed Capital	Earned Capital	Accumulated OCI