14, please answer the question. thanks Swifty Corporation owns corporate bonds at December 31, 2023, accounted for using the amortized cost model. These bonds have apar value of $896,000 and an amortized cost of $883,000. After an impairment review was triggered, Swifty determined that thediscounted impaired cash flows are $826,000 using the current market rate of interest, but are $822,000 using the market rate whenthe bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets. Assumethat no impairment loss had been recorded earlier.(a1)Your answer is correct.Assuming Swifty is a private enterprise that applies ASPE, prepare the journal entry related to the impairment at December 31,2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select"No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.)DateDec. 31,2023Account Titles and ExplanationLoss on ImpairmentBond Investment at Amortized CostDebit57000Credit57000 Assuming Swifty is a private enterprise that applies ASPE, prepare the journal entry related to a December 31, 2024 fair value of$851,000 and an adjusted carrying amount at that date of $830,500. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Listdebit entry before credit entry.)DateDec. 31,2024Account Titles and ExplanationDebitCredit

Impairment may be caused by a singular or one-time event, such as a change in the law or the…

Swifty Corporation owns corporate bonds at December 31, 2023, accounted for using the amortized cost model. These bonds have a par value of $896,000 and an amortized cost of $883,000. After an impairment review was triggered, Swifty determined that the discounted impaired cash flows are $826,000 using the current market rate of interest, but are $822,000 using the market rate when the bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets. Assume that no impairment loss had been recorded earlier.

Swifty Corporation owns corporate bonds at December 31, 2023, accounted for using the amortized cost model. These bonds have a par value of $896,000 and an amortized cost of $883,000. After an impairment review was triggered, Swifty determined that the discounted impaired cash flows are $826,000 using the current market rate of interest, but are $822,000 using the market rate when the bonds were first acquired. The company follows a policy of directly reducing the carrying amount of any impaired assets. Assume that no impairment loss had been recorded earlier.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 7MCQ

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