Atlanta Inc. holds an AFS bond investment in Falcons Corporation. The amortized cost of the investment is $140,500 on December 31. Atlanta Inc. estimates the fair value of the bonds to be $130,000. The unrealized loss of $10,500 is partially due to a credit loss of $8,000, with the remaining portion due to other factors. The company adjusted the AFS bonds to fair value through OCI on December 31. a. Record the impairment loss on December 31, assuming that the company does not intend to sell the investment 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. Date Credit Debit 2,500 Dec. 31 0 X 8,000 0X Account Name Unrealized Gain or Loss-OCI Allowance for Credit Losses Fair Value Adjustment-AFS N/A-Credit To record the impairment loss. 0 10,500 x 0 0 x b. Record the impairment loss on December 31, now assuming that the company intends to sell the investment. Credit Debit 10,500 0 0 10,500 x Date Account Name (b) Dec. 31 Loss on Impairment Fair Value Adjustment-TS Unrealized Gain or Loss-Income Loss on Sale of Investment To record the impairment loss. 8,000 OX 0 8,000 x