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Instructions On September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity bonds. On that date, the carrying value of

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Instructions On September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity bonds. On that date, the carrying value of the bonds is $38,500 and the fair value is $22,980. Franz evaluation of this investment reveals that expected credit losses are $10,000. Required: Prepare the journal entry to record the impairment.

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