Whispering Corporation has an investment in corporate bonds classified as available-for-sale at December 31, 2020. These bonds have a par value of $432,000, an amortized cost of $432,000, and a fair value of $348,000. The unrealized loss of $84,000 previously recognized as other comprehensive income and as a separate component of stockholders equity is now determined to be other than temporary. That is, the company believes that impairment accounting is now appropriate for these bonds.

(a)

Partially correct answer icon

Your answer is partially correct.

Prepare the journal entry to record fair value adjustment and

recognize the impairment. (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.)

I already tried, the entry is neither

unrelized gain or loss-equity

fair value adjustment

nor Unrealized Holding Gain or Loss - Income

Debt Investments