Rell Corporation reports under IFRS No. 9. Rell has an investment in Tirish, Inc. bonds the Rell accounts for at amortized cost, given that the bonds pay only interest and principal and Rell's business purpose is to hold the bonds to maturity. Rell purchased the bonds for 11,800,000. As of December 31, 2018, Rell calculates 948,000 of credit losses expected for default events occurring during 2019 and 630,000 of credit losses expected for default events occurring after 2019 Required 1. Assume the Tirish bonds have not had a significant increase in credit risk. Prepare the journal entry to record any impairment loss as of December 31, 2018. 2. Assume the Tirish bonds have had a significant increase in credit risk. Prepare the journal entry to record any impairment loss as of December 31, 2018 3. Assume the Tirish bonds have not had a significant increase in credit risk, and that as of December 31, 2019, Rell calculates 830,000 of credit losses expected for default events occurring during 2020 and 530,000 of ceditosses expected for default events occurring after 2020. Prepare the journal entry Rell would make with respect to any impairment loss as of December 31, 2019. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required3 Assume the Tirish bonds have not had a significant increase in credit risk. Prepare the journal entry to record any impairment loss as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Debit Credit No General Journal Event 948,000 mpairment loss-NI 948,000 Required 2> Required Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Assume the Tirish bonds have had a significant increase in credit risk. Prepare the journal entry to record any impairment loss as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) General Journal Debit No Event Credit 1,578,000 Impairment loss-NI 1,578,000 Required Required 3> Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the Tirish bonds have not had a significant increase in credit risk, and that as of December 31, 2019, Rell calculates 830,000 of credit losses expected for default events occurring during 2020 and 530,000 of credit losses expected for default events occurring after 2020. Prepare the journal entry Rell would make with respect to any impairment loss as of December 31, 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less Debit No Event General Journal Credit Required 2 Required 3
