Calvin Corp. holds Crub Co. bonds as an investment Held-to-maturity (HTM). On 1/1/2017, the investment had a fair value of $4,800; and, the investment was properly reported at amortized cost of $5,000. On 12/31/2017, the SEC reports that Crub has admitted to fraudulent accounting practices and malfeasance. With the announcement, the bonds fair value falls to $3,800 and the bond is classified as impaired. What is the impairment loss for 2017?

a. 200

b. 1,000

c. -0-

d. 1,200 <---------------------------- ANSWER

e. 800

Can someone help me with this question please? I know the answer is d) 1,200 but I want an explanation as to WHY? show your work please and thanks in advance!