Assume a company purchased an investment in Ayayai Ltd$.$ bonds for $$99,800$ at par value at the beginning of the year. The bonds pay interest on December $31$ each year. The bond is carried at amortized cost. Ayayai is experiencing financial difficulties and is not able to make the payment of principal and interest on the bond. The present value of the discounted revised cash flows is $$76,500$ using the current market interest rate. The company follows ASPE.

Is the investment impaired? If so$,$ prepare the journal entry to reflect 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.$)$

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