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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

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 ??? ??? ???

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