Recording Entries for Impairment of Investments-AFS Atlanta Inc. holds an AFS bond investment in Falcons Corporation. The amortized cost of the investment is $84,300 on December 31, 2020. Atlanta Inc. estimates the fair value of the bonds to be $78,000. The unrealized loss of $6,300 is partially due to a credit loss of $4,800, with the remaining portion due to other factors. The company adjusted the AFS bonds to fair value through OCI on December 31, 2020. a. Record the impairment loss on December 31, 2020, assuming that the company does not intend to sell the investment and does not believe it is more likely than not that it will be required to sell the investment before recovery of any unrealized loss. b. Record the impairment loss on December 31, 2020, now assuming that the company intends to sell the investment. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name a. Dec. 31, 2020 Unrealized Gain or Loss--OCI Allowance for Credit Losses Fair Value Adjustment--AFS N/A b. Dec. 31, 2020 Loss on Impairment Recovery of Loss on Impairment Allowance for Credit Losses DL " Dr. Cr. 1500 0 4800 0 0 6300 0 0 6300 0 0 0 0 4800 0 0