LED Corporation owns $$1,000,000$ of Branch Pharmaceuticals bonds and classifies its investment as securities available$-$for$-$sale. The

market price of Branch's bonds fell by $$477,000$ due to concerns about one of the company's principal drugs. The concerns were

justified when the FDA banned the drug. $$109,000$ of that decline in value already had been included in OCl as a temporary unrealized

loss in a prior period. LED views $$209,000$ of the $$477,000$ loss as related to creditlosses, and the other $$268,000$ as noncredit

losses. LED thinks it is more likely than not that it will have to sell the investment before fair value recovers.

What journal entries should LED record to account for any credit or noncredit losses in the current period? How should the decline

affect net income and comprehensive income?

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What journal entries should LED record to account for any credit or noncredit losses in the current period?

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the entry for reclassification adjustment.

Note: Enter debits before credits.