KLR Corporation purchased $114,000 of Hales Incorporated 5% bonds at par in 2023 and reported the bonds at amortized cost. Unfortunately, a combination of problems at Hales and in the debt market caused the fair value of the Hales investment to decline to $77,000 during 2024. KLR does not believe it is more likely than not that it will have to sell the investment before its fair value recovers. When KLR applies the ECL model to account for its investment