Please help me with correct answer thanku LED Corporation owns $1,300,000 of Branch Pharmaceuticals bonds and classifies its investment as securities held-to-maturity. Themarket price of Branch's bonds fell by $481,000 due to concerns about one of the company's principal drugs. The concerns werejustified when the FDA banned the drug. LED views $200,000 of the $481,000 loss as related to credit losses, and the other $281,000as noncredit losses. LED thinks it is more likely than not that it will have to sell the investment before fair value recovers.What journal entries should LED record to account for any credit or noncredit losses in the current period? How should the declineaffect net income and comprehensive income?Complete this question by entering your answers in the tabs below.GeneralJournalEffectHow should the decline affect net income and comprehensive income?Note: Negative amounts should be entered with minus sign.Net incomeOther comprehensive incomeNet effect on comprehensive incomeEffect$ (200,000)$ (281,000)(481,000)< General JournalEffect >

Credit losses occur when an investment, like bonds, loses value because the issuer (the company or…

Corporation owns $1,300,000 of Branch Pharmaceuticals bonds and classifies its investment as securities held-to-maturity. The ket price of Branch's bonds fell by $481,000 due to concerns about one of the company's principal drugs. The concerns were fied when the FDA banned the drug. LED views $200,000 of the $481,000 loss as related to credit losses, and the other $281,00 oncredit losses. LED thinks it is more likely than not that it will have to sell the investment before fair value recovers. t journal entries should LED record to account for any credit or noncredit losses in the current period? How should the decline et net income and comprehensive income? omplete this question by entering your answers in the tabs below. General Journal Effect w should the decline affect net income and comprehensive income? te: Negative amounts should be entered with minus sign. income er comprehensive income effect on comprehensive income Effect $ (200,000) $ (281,000) $ (481,000) < General Journal Effect >

Corporation owns $1,300,000 of Branch Pharmaceuticals bonds and classifies its investment as securities held-to-maturity. The ket price of Branch's bonds fell by $481,000 due to concerns about one of the company's principal drugs. The concerns were fied when the FDA banned the drug. LED views $200,000 of the $481,000 loss as related to credit losses, and the other $281,00 oncredit losses. LED thinks it is more likely than not that it will have to sell the investment before fair value recovers. t journal entries should LED record to account for any credit or noncredit losses in the current period? How should the decline et net income and comprehensive income? omplete this question by entering your answers in the tabs below. General Journal Effect w should the decline affect net income and comprehensive income? te: Negative amounts should be entered with minus sign. income er comprehensive income effect on comprehensive income Effect $ (200,000) $ (281,000) $ (481,000) < General Journal Effect >

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 10RE: On September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity...

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LED Corporation owns $1,000,000 of Branch Pharmaceuticals bonds and classifies its investment as securities held-to-maturity. The market price of Branch’s bonds fell by $450,000 due to concerns about one of the company’s principal drugs. The concerns were justified when the FDA banned the drug. LED views $200,000 of the $450,000 loss as related to credit losses, and the other $250,000 as noncredit losses. LED thinks it is more likely than not that it will have to sell the investment before fair value recovers. What journal entries should LED record to account for any credit or noncredit losses in the current period? How should the decline affect net income and comprehensive income? General Journal What journal entries should LED record to account for any credit or noncredit losses in the current period? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Transaction General Journal Debit…
LED Corporation owns $1,000,000 of Branch Pharmaceuticals bonds and classifies its investment as securities held to maturity. The market price of Branch’s bonds fell by $450,000, due to concerns about one of the company’s principal drugs. The concerns were justified when the FDA banned the drug. LED views $200,000 of the $450,000 loss as related to credit losses, and the other $250,000 as noncredit losses. LED thinks it is more likely than not that it will have to sell the investment before fair value recovers. What journal entries should LED record to account for any credit or noncredit losses in the current period? How should the decline affect net income and comprehensive income?
LED Corporation owns $1,000,000 of Branch Pharmaceuticals bonds and classifies its investment as securities available-for-sale. The market price of Branch’s bonds fell by $450,000 due to concerns about one of the company’s principal drugs. The concerns were justified when the FDA banned the drug. $100,000 of that decline in value already had been included in OCI as a temporary unrealized loss in a prior period. LED views $200,000 of the $450,000 loss as related to credit losses, and the other $250,000 as noncredit losses. LED does not plan to sell the investment and does not think it is more likely than not that it will have to sell the investment before fair value recovers. What journal entries should LED record to account for the decline in market value in the current period? How should the decline affect net income and comprehensive income? What journal entries should LED record to account for the decline in market value in the current period?Note: If no entry is required for…
LED Corporation owns $1,000,000 of Branch Pharmaceuticals bonds and classifies its investment as securities available-for-sale. The market price of Branch’s bonds fell by $450,000 due to concerns about one of the company’s principal drugs. The concerns were justified when the FDA banned the drug. $100,000 of that decline in value already had been included in OCI as a temporary unrealized loss in a prior period. LED views $200,000 of the $450,000 loss as related to credit losses, and the other $250,000 as noncredit losses. LED does not plan to sell the investment and does not think it is more likely than not that it will have to sell the investment before fair value recovers. What journal entries should LED record to account for the decline in market value in the current period? How should the decline affect net income and comprehensive income? General Journal What journal entries should LED record to account for the decline in market value in the current period?Note: If no…
LED Corporation owns $1,000,000 of Branch Pharmaceuticals bonds and classifies its investment as securities available-for-sale. The market price of Branch’s bonds fell by $456,000 due to concerns about one of the company’s principal drugs. The concerns were justified when the FDA banned the drug. $102,000 of that decline in value already had been included in OCI as a temporary unrealized loss in a prior period. LED views $202,000 of the $456,000 loss as related to credit losses, and the other $254,000 as noncredit losses. LED thinks it is more likely than not that it will have to sell the investment before fair value recovers. What journal entries should LED record to account for any credit or noncredit losses in the current period? How should the decline affect net income and comprehensive income?
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LED Corporation owns $1,000,000 of Branch Pharmaceuticals bonds and classifies its investment as securitiesavailable-for-sale. The market price of Branch’s bonds fell by $450,000, due to concerns about one of the company’sprincipal drugs. The concerns were justified when the FDA banned the drug. $100,000 of that decline in value alreadyhad been included in OCI as a temporary unrealized loss in a prior period. LED views $200,000 of the $450,000 lossas related to credit losses, and the other $250,000 as noncredit losses. LED thinks it is more likely than not that itwill have to sell the investment before fair value recovers. What journal entries should LED record to account for thedecline in market value in the current period? How should the decline affect net income and comprehensive income?
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