Company A estimated that it will receive less interest payments and principal payments from its Available-for-Sale investments in Company Bs bonds. Company A does not intend to sell the bonds before they will recover. See the information below:

Amortized cost of Company B bonds: $800,000.

Discounted value of estimated payments at the interest rate on the date of bond inception: $650,000.

Fair value of Company B bonds: $400,000.

How will Company A record this assessment?

	a.	Company A will debit Credit Loss Expense by $150,000.
	b.	Company A will debit loss on impairment by $400,000.
	c.	Company A will credit Investment account by $800,000.
	d.	Company A will not record this assessment given that the investment is AFS.
	e.	Company A will debit Credit Loss Expense by $400,000.