LED corporation owns $1.5 million of branch pharmaceuticals bonds and classifies its investment as securities available for sale. The market price of branches bonds fell by $950,000, due to concerns about one of the companies principal drugs. The concerns were justified when the FDA banned the drug. $100,000 of that decline in value already had been included in OCI as a temporary unrealized loss in a prior period. LED views $600,000 of the $950,000 loss as related to credit losses in other $350,000 as non-credit losses. LED does not plan to sell the investment and does not think 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 the decline in market value in the current period? How should the decline affect net income and comprehensive income?

Complete this question by entering your answ General Journal Effect What journal entries should LED record to account for the decline in market value in the current period? (If no entry is for a transaction/event, select "No journal entry required" in the first account field.) Credit Debit General Journal No Transaction 950,000 950,000 1 X Loss on investment (unrealized NI) Gain on investments (unrealized, NI) 100,000 100,000 2 2 Fair value adjustment Gain on investments (unrealized, OCI) Effect> Centralno Answer is no Complete this question by entering your answers in the tabs below. General Journal Effect How should the decline affect net income and comprehensive Income? (Negative amounts should be entered with minus sign.) Effect Income statement Other comprehensive Income Net effect on comprehensive income