An AFS debt security was purchased for $100,000. At the beginning of the current year, it has a fair value of $125,000. At the end of the current year, its fair value is $70,000. The decline in value is attributed to a decline in the credit rating of the investee.
Required
Prepare the journal entry to report the impairment loss for the current year.

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The Answer of An AFS debt security was purchased for $100,000. At the beginning of the current year, it has a fair value of $125,000. At the end of the current year, its fair value is $70,000. The decline in value is attributed to a decline in the credit rating of the investee.
Required
Prepare the journal entry to report the impairment loss for the current year.

An AFS Debt Security Was Purchased for $100,000