Bioom Corporation purchased S1700,000 of Taylor Company 5% bonds, at their face amount with the intent and ability to hold the bonds until they matured in 2025, so Bloom classifies its investment as AFS. Unfortunately, a combination of problems at Taylor Company and in the debt securities market caused the fair value of the Taylor investment to decline to $1160.000 during 2021 The Following are the two alternative scenarios that should be analyzed independent of each other. 1. Bloom now believes it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their folt value of the $540,000 decline in fair value Bloom attributes $320.000 to credit losses, and $220,000 to noncredit losses. 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 $540,000 decline in fair value, Bloom attributes $320,000 to credit losses, and $220,000 to noncredit losses Required: 1. Prepare appropriate entryis) at December 31, 2021 and indicate how the scenario will affect the 2021 income statement, OCI, and comprehensive income. 2. Prepare appropriate entry(s) at December 31, 2021. Assume that, at the end of 2020, Bloom had recorded an unrealized loss of $135,000 on the Taylor investment 1. Prepare appropriate entry(s) at December 31, 2021 and indicate how the scenario will affect the 2021 Income statement, OCI, and comprehensive Income 2. Prepare appropriate entrys) at December 31, 2021. Assume that at the end of 2020, Bloom had recorded an unrealized loss of $135,000 on the Taylor investment Complete this question by entering your answers in the tabs below. Required 1G) Required 1 Inc Required 2 Stirnt Indicate how the scenario will affect the 2021 income statement, oci, and comprehensive income. (Amounts to be deducted should be indicated with a minus sign.) Scenario 1 Effect S (540,000) Scenario 2 Effect Income statement Other Comprehensive Income Net effect on comprehensive income $ (220.000)