An AFS debt security was purchased at par value, $100,000. At the end of the year, its fair value is $70,000. $5,000 of the decline in value is attributed to market conditions, and the remainder 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. For reported gains and losses, indicate whether they are reported in income or OCI.

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The Answer of An AFS debt security was purchased at par value, $100,000. At the end of the year, its fair value is $70,000. $5,000 of the decline in value is attributed to market conditions, and the remainder 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. For reported gains and losses, indicate whether they are reported in income or OCI.

An AFS Debt Security Was Purchased at Par Value, $100,000