Flounder Corporation has municipal bonds classified as a held-to-maturity at December 31, 2017. These bonds have a par value of $871,000, an amortized cost of $871,000, and a fair value of $799,000. The company believes that impairment accounting is now appropriate for these bonds. * Question 1 DYour answer is 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 o for the amounts.) Account Titles and Explanation Debit Credit Loss on Impairment 72000 a Debt Investments 2000 (To record the impairment.) Attempts: 1 of 5 used * Question 1 DYour answer is correct. What is the new cost basis of the municipal bonds? New cost basis of the municipal bonds s 799000 Given that the maturity value of the bonds is $871,000, should Flounder Corporation amortize the difference between the carrying amount and the maturity value over the life of the bonds? N