Swset Company has the following inwestmants as of Dacamber $31,2025.$

Investments in common stock of Laser Company

$$1,350,000$

Investment in dabt securities of FourSquare Company $,3,390,000$

In both imvestments, the carrying value and the fair value of these two investments are the same at December $31,2025.$ Sweat's stock

inwestmants do not result in significant influence on the coarations of Laser Compary. Swaet's debt investmant is considared held$-$to$-$

maturity. At Decamber $31,2026,$ the shares in Lasar Company are valued at $$1,060,000$; the dabt securities of FourSquare are valued

at $$2,530,000$ and are considered impairad.

$($a$)$

Corract Anawar $[$Used$)$

Prepare the journal antry to record the impairment of the debt securities at December $31,2026.($List debit entry before credit entry.

Credit account titles are automatically indented when amount is entered. Do not indent manually, If no entry is required, select $"$No Entry"

for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Dec.

Bad Datet Exparse

$2026$

Alowancs for Doubthal Accounts

$($b$)$

Assuming the fair value of the Laser shares is $$1,460,000$ and the value of its debt investment is $$2,970,000,$ what entries, if any,

should be racorded in $2027?($List debit entry before credit entry. Credit account titles are automatically indented when amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$