List of accounts: accumulated other comprehensive loss, allowance for doubtful accounts, allowance to reduce inventory to market, bad debt expense, bonds payable, cash, call option, common stock, cost of goods sold, debt investments, dividend revenue, dividend receivable, equity investments, fair value adjustment, futures contract, gain on sale of investment, gain on settlement of call option, gain on settlement of put option, interest expense, interest receivable, interest revenue, inventory, investment income, loss on impairment, loss on sale of investments, loss on settlement of call option, loss on settlement of put option, no entry, notes payable, paid-in capital excess of par - common stock, put option, recovery of loss of impairment, retained earnings, revenue from investment, sales revenue, swap contract, unrealized holding gain or loss - equity, and unrealized holding gain or loss - income.

Nash Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company Investment in debt securities of FourSquare Company $1,460,000 $3,230,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Nash's stock investments does not result in significant influence on the operations of Laser Company. Nash's debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $1,060,000; the debt investment securities of FourSquare are valued at $2,430,000 and are considered impaired. (a) Your Answer Correct Answer (Used) Prepare the journal entry to record the impairment of the debt securities at December 31, 2021. (Credit account 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 O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 Allowance for Doubtful Accounts 800,000 Debt Investments 800,000 (b) Your Answer Correct Answer (Used) Assuming the fair value of the Laser shares is $1,360,000 and the value of its debt investment is $2,900,000, what entries, if any, should be recorded in 2022 related to impairment? (Credit account 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 O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Fair Value Adjustment 300,000 Unrealized Holding Gain or Loss - Income 300,000 (c) Your answer is partially correct. Assume that the debt investment in Four Square Company was available-for-sale and the expected credit loss was $890,000. Prepare the journal entry to record this impairment on December 31, 2021. (Credit account 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 for the amounts.) Account Titles and Explanation Debit Credit Unrealized Holding Gain or Loss -Income 890.000 Debt Investments 890,000 e Textbook and Media List of Accounts Save for Later Attempts: 1 of 3 used Submit