ABC Inc. is a publicly traded enterprise which holds bonds in DEF Inc. The unadjusted carrying value of the bonds as at the most recent reporting date was $682,000. There was a credit balance of $5,000 in the company's Loss Allowance account with respect to these bonds at that date. ABC Inc. is doubtful about DEF's future viability, as the company has been experiencing problems as of late. ABC expects additional credit losses of $4,000 and a lifetime of credit losses totaling $500,000. The preceding amounts have already been discounted. However, DEF Inc. has not yet defaulted on any interest payments. Based on the above information, ABC Inc. should record a loss of:

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The Answer of ABC Inc. is a publicly traded enterprise which holds bonds in DEF Inc. The unadjusted carrying value of the bonds as at the most recent reporting date was $682,000. There was a credit balance of $5,000 in the company's Loss Allowance account with respect to these bonds at that date. ABC Inc. is doubtful about DEF's future viability, as the company has been experiencing problems as of late. ABC expects additional credit losses of $4,000 and a lifetime of credit losses totaling $500,000. The preceding amounts have already been discounted. However, DEF Inc. has not yet defaulted on any interest payments. Based on the above information, ABC Inc. should record a loss of:

ABC Inc Is a Publicly Traded Enterprise Which Holds Bonds in in DEF