Tamarisk Corporation has municipal bonds classified as a held$-$to$-$maturity at December $31,2025.$ These bonds have a

par value of $$791,000,$ an amortized cost of $$791,000,$ and a fair value of $$709,000.$ The company believes that

impairment accounting is now appropriate for these bonds.

$($a$)$

Prepare the journal entry to recognize the impairment. $($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.$)$

Account Titles and Explanation

Debit

Credit

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Attempts: unlimited

$($b$)$

What is the new carrying value of the municipal bonds?

New carrying value $

Given that the maturity value of the bonds is $$791,000,$ should Tamarisk Corporation amortize the difference

between the carrying amount and the maturity value over the life of the bonds?

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Attempts: unlimited

$($c$)$

At December $31,2026,$ the fair value of the municipal bonds is $$749,000.$ Prepare the entry $($if any$)$ to record this

information. $($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.$)$

Account Titles and Explanation

Debit

Credit