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Bloom Corporation purchased $1,300,000 of Taylor Company 5% bonds, at their face amount. These bonds mature in 2025. Bloom classifies this Investment as AFS. Unfortunately, a combination of problems at Taylor Company and in the debt securities market caused the fair value of the Taylor Investment to decline to $840,000 during 2021. The following are the two alternative scenarios that should be analyzed Independent of each other. 1. Bloom now believes it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their fair value. Of the $460,000 decline in fair value, Bloom attributes $280,000 to credit losses, and $180,000 to noncredit losses. 2. Bloom does not plan to sell the Taylor bonds prior to maturity, and does not believe it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their fair value. Of the $460,000 decline in fair value, Bloom attributes $280,000 to credit losses, and $180,000 to noncredit losses. Required: Prepare appropriate entry(s) at December 31, 2021 and indicate how the scenario will affect the 2021 Income statement, OCI, and comprehensive Income. Complete this question by entering your answers in the tabs below. Required 1 G Required 1 Inc Stmt Prepare appropriate entry(s) at December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B Bloom now believes it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their fair value. Of the $450,000 decline in fair value, Bloom attributes $280,000 to credit losses, and $180,000 to noncredit losses. Record the impairment effect on the 2021 Note: Enter debits before credits. General Journal Debit Credit Event 01 Record entry Clear entry View general journal