Ask Question
25 July, 21:01

Presented below are two independent cases related to available-for-sale debt investments. Case 1 Case 2 Amortized cost $41,640 $91,800 Fair value 32,220 102,220 Expected credit losses 27,360 83,660 For each case, determine the amount of impairment loss, if any.

+2
Answers (1)
  1. 25 July, 21:38
    0
    Case 1 = $9,420

    Case 2 = 0

    Explanation:

    Determining the amount of impairment loss is given below:-

    Case 1

    Impairment loss = Amortized cost - Fair value

    = $41,640 - $32,220

    = $9,420

    Case 2

    Impairment loss = Amortized cost - Fair value

    = 91,800 - $102,220

    = 0

    Since, the fair value is higher than Amortized cost so the value of Impairment loss in case 2 is 0.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Presented below are two independent cases related to available-for-sale debt investments. Case 1 Case 2 Amortized cost $41,640 $91,800 Fair ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers