ABC company purchased an available for sale bond for $175,000. The FMV of the bond at the end of the

ABC company purchased an available for sale bond for $175,000. The FMV of the bond at the end of the second year was $145,000. The appropriate journal entry was made on December 31, Year 2.On January 2, Year 3 it was decided that the capacity of the company to pay interest was impaired. Prepare the appropriate journal entry to record the impairment of the bond. The value was estimated to be $142,000.

 

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