Ivanhoe corporation has municipal bonds classified as a held$-$to$-$maturity at December $31,2025.$ These bonds have a par value of $$792,000,$ an amortized cost of $$792,000,$ and a fair value of $$71,000.$ The company believes that impairment accounting is now appropriate for these bonds.

$($A$)$ Prepare the journal entry to recognize the impairment. $($List debt entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, put no entry for account title and enter $0$ for the amounts.$)$

$($B$)$What is the new carrying value of the municipal bonds?

New carrying value

$

Given that the maturity value of the bonds is $$792,000,$ should Ivanhoe Corporation amortize the difference between the carrying amount and the maturity value over the life of the bonds?

$($c$).$

At December $31,2026,$ the fair value of the municipal bonds is $$751,000.$ Prepare the entry $($if any$)$ to record this information. $($List debit entry before credit entry. Credit occount 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 $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

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List of Accounts