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Kenemcaid6979
Kenemcaid6979
24.10.2019 • 
Business

Uliana company has the following investments as of december 31, 2017: investments in common stock of beam company $1,700,000 investment in debt securities of ninesquare company $3,500,000 in both investments, the carrying value and the fair value of these two investments are the same at december 31, 2017. juliana’s stock investments does not result in significant influence on the operations of beam company. juliana’s debt investment is considered held-to-maturity. at december 31, 2018, the shares in beam company are valued at $1,200,000; the debt investment securities of ninesquare are valued at $2,600,000. assume that these investments are considered impaired. instructions (a) prepare the journal entries to record the impairment of these two securities at december 31, 2018. (b) assuming the fair value of the beam shares is $1,400,000 and the value of its debt investment is $2,950,000, what entries, if any, should be recorded in 2019 related to impairment? (c) prepare the journal entries at december 31, 2018, assuming these securities are not impaired. (ignore interest revenue entries.) (d) assume that the debt investment in ninesquare company was available-for-sale and the expected credit loss was $1,000,000. prepare the journal entry to record this impairment on december 31, 2018.

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