Martinez Corporation owns corporate bonds at December 31, 2020, accounted for using the amortized cost model. These bonds have a par value of $752,000 and an amortized cost of $741,000. After an impairment review was triggered, Martinez determined that the discounted impaired cash flows are $693,500 using the current market rate of interest, but are $690,000 using the market rate when the bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets. For simplicity purposes, assume that no impairment loss had been recorded earlier. Assuming Martinez Corporation is a private enterprise that applies ASPE, prepare the journal entry related to the impairment at December 31, 2020. (Credit account titles are automatically indented when the 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, 2020 e Textbook and Media List of Accounts Assuming Martinez Corporation is a private enterprise that applies ASPE, prepare the journal entry related to a December 31, 2021 fair value of $714,000 and an adjusted carrying amount at that date of $697,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 Assuming that Martinez Corporation applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to the impairment at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 e Textbook and Media List of Accounts Assuming Martinez Corporation applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to a December 31, 2021 fair value of $714,000 and an adjusted carrying amount at that date of $697,000. Assume that the discounted cash flow numbers provided reflect the lifetime expected risk of default. (Credit account titles are automatically indented when the 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 e Textbook and Media List of Accounts Assume that Martinez is a private enterprise under that applies ASPE and that the company uses a valuation allowance instead of directly reducing the carrying amount of the investment. Prepare the entry required for the impairment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 eTextbook and Media List of Accounts Assume that Martinez is a private enterprise that applies ASPE, and that the company uses a valuation allowance instead of directly reducing the carrying amount of the investment. Prepare the entry required for the subsequent increase in fair value related to December 31, 2021, assuming fair value of $714,000 and an adjusted carrying amount at that date of $697,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 e Textbook and Media List of Accounts In practice, which method would recognize losses earlier-the incurred loss model or the expected loss model? The would recognize losses earlier. eTextbook and Media List of Accounts Martinez Corporation owns corporate bonds at December 31, 2020, accounted for using the amortized cost model. These bonds have a par value of $752,000 and an amortized cost of $741,000. After an impairment review was triggered, Martinez determined that the discounted impaired cash flows are $693,500 using the current market rate of interest, but are $690,000 using the market rate when the bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets. For simplicity purposes, assume that no impairment loss had been recorded earlier. Assuming Martinez Corporation is a private enterprise that applies ASPE, prepare the journal entry related to the impairment at December 31, 2020. (Credit account titles are automatically indented when the 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, 2020 e Textbook and Media List of Accounts Assuming Martinez Corporation is a private enterprise that applies ASPE, prepare the journal entry related to a December 31, 2021 fair value of $714,000 and an adjusted carrying amount at that date of $697,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 Assuming that Martinez Corporation applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to the impairment at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 e Textbook and Media List of Accounts Assuming Martinez Corporation applies IFRS and that there has been a significant increase in credit risk, prepare the journal entry related to a December 31, 2021 fair value of $714,000 and an adjusted carrying amount at that date of $697,000. Assume that the discounted cash flow numbers provided reflect the lifetime expected risk of default. (Credit account titles are automatically indented when the 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 e Textbook and Media List of Accounts Assume that Martinez is a private enterprise under that applies ASPE and that the company uses a valuation allowance instead of directly reducing the carrying amount of the investment. Prepare the entry required for the impairment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 eTextbook and Media List of Accounts Assume that Martinez is a private enterprise that applies ASPE, and that the company uses a valuation allowance instead of directly reducing the carrying amount of the investment. Prepare the entry required for the subsequent increase in fair value related to December 31, 2021, assuming fair value of $714,000 and an adjusted carrying amount at that date of $697,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 e Textbook and Media List of Accounts In practice, which method would recognize losses earlier-the incurred loss model or the expected loss model? The would recognize losses earlier. eTextbook and Media List of Accounts