Brief Exercise 12-17 (Static) HTM investments and impairment (Appendix 12B) (LO12-2, 12-8) LED Corporation owns $1,000,000 of Branch Pharmaceuticals bonds and classifles Its Investment as securities held to maturity. The market price of Branch's bonds fell by $450,000, due to concerns about one of the company's principal drugs. The concerns were justified when the FDA banned the drug. LED views $200,000 of the $450,000 loss as related to credit losses, and the other $250,000 as noncredit losses. LED thinks it is more likely than not that it will have to sell the Investment before fair value recovers. What Journal entries should LED record to account for any credit or noncredit losses in the current perlod? How should the decline affect net income and comprehensive Income? Complete this question by entering your answers in the tabs below. General Journal Effect ces What journal entries should LED record to account for any credit or noncredit losses in the current period? (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction that Journal entry worksheet 1 Record the entry for credit or noncredit losses in the current period. Note: Enter debits before credits General Journal Dobit Credit General Journal Effect What journal entries should LED record to account for any credit or noncredit losses in the current period? (If no entry is required fo transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet