Homework Answers
Ans:
Carrying value of the bond investment = $38,500
Fair value of bond investment = $22,980
Impairment loss = Carrying value of the bond investment - Fair value of bond investment
= 38,500 - 22,980
= $15,520
Journal entry to record the impairment of bond investment will be as under:
| Loss on impairment | 15,520 | ||
| Bond investment | 15,520 |
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