Concho Corporation purchased $110,000 of Coryell Inc. 4% bonds at par in 2020 with the intent and ability to hold the bonds until the bonds mature in 2025, so Concho classifies its investment as held-to-maturity. Unfortunately, a combination of problems at Coryell and in the debt market caused the fair value of the Coryell investment to decline to $90,000 during 2021. Concho applies the CECL model to account for its investment and calculates that of the $20,000 drop in fair value, $5000 of it relates to credit losses for amounts not expected to be collected, and the $15,000 remainder relates to noncredit losses. Concho's accounting for this impairment will reduce before-tax net income for 2021 by: $15,000. $20,000. $0. $5000. A Click Submit to complete this assessment.