Recording Entries for ImpairmentAFS

Determine the amount of impairment loss (if any) to record in income under the following three separate scenarios for an AFS debt investment. In all three cases, the company does not intend to sell 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. Assume that the company has already adjusted the AFS investments to fair value through OCI.

Scenario	1	2	3
Fair value	162,000	126,000	108,000
Amortized cost	144,000	144,000	144,000
Expected credit loss	27,000	27,000	27,000
Impairment loss	???	???	???