Bonita Corporation has an investment in corporate bonds classified as available-for-sales at December 31,2020. These bonds have a par value of $466,000 an amoritzed cost lf $466,000 and a fair value of $388,000. The unrealized loss of $78,000 previously recognized as other comprehensive income and as a separate component of stockholders' equity is not determined to be other than temporary. That is the company believes that impairment accountkng is now appropriate for these bonds.

prepare the journal entries to recognized the impairement.

Bonita Corporation has an investment in corporate bonds classified as available for sale at December 31, 2020. These bonds have a par value of $466,000, an amortized cost of $466,000, and a fair value of $388,000. The unrealized loss of $78,000 previously recognized as other comprehensive income and as a separate component of stockholders' equity is now determined to be other than temporary. That is the company believes that impairment accounting is now appropriate for these bonds (a) Your answer is partially correct. Prepare the journal entry to recognize the impairment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation 78000 Loss on Impairment 78000 Debt Investments (To record fair value adjustment) 78000 Bad Debt Expense 78000 Fair Value Adjustment Adardimnieman