E17-23. Please answer part d. E17.23 (LO 4) (Impairment) Elaina Company has the followinginvestment as of December 31, 2022:Investment in debt securities of FourSquare Company $3,300,000|The carrying value and the fair value of the investment are the sameat December 31, 2022. Elaina's debt investment is considered held-for-collection. At December 31, 2023, the debt investment securities ofFourSquare are valued at $2,500,000. Assume that these investmentsare considered impaired.Instructionsa. Prepare the journal entries to record the impairment of thesesecurities at December 31, 2023.b. Assuming the fair value of its debt investment is $2,950,000,what entries, if any, should be recorded in 2024 related toimpairment?c. Prepare the journal entries at December 31, 2024, assuming thesesecurities are not impaired. (Ignore interest revenue entries.)d. Assume that the debt investment in FourSquare Company washeld-for-collection and selling and the expected credit loss was$250,000. Prepare the journal entry to record this impairment onDecember 31, 2023.

I am answering the sub-part (d) of the question as specified by the student. Journal is the book of…

Answered: E17.23 (LO 4) (Impairment) Elaina Ce…

E17.23 (LO 4) (Impairment) Elaina Ce investment as of December 31, 2022: Investment in debt securities of FourSq The carrying value and the fair value of th at December 31, 2022. Elaina's debt inves

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

E17-23. Please answer part d.

E17.23 (LO 4) (Impairment) Elaina Company has the following
investment as of December 31, 2022:
Investment in debt securities of FourSquare Company $3,300,000|
The carrying value and the fair value of the investment are the same
at December 31, 2022. Elaina's debt investment is considered held-
for-collection. At December 31, 2023, the debt investment securities of
FourSquare are valued at $2,500,000. Assume that these investments
are considered impaired.
Instructions
a. Prepare the journal entries to record the impairment of these
securities at December 31, 2023.
b. Assuming the fair value of its debt investment is $2,950,000,
what entries, if any, should be recorded in 2024 related to
impairment?
c. Prepare the journal entries at December 31, 2024, assuming these
securities are not impaired. (Ignore interest revenue entries.)
d. Assume that the debt investment in FourSquare Company was
held-for-collection and selling and the expected credit loss was
$250,000. Prepare the journal entry to record this impairment on
December 31, 2023.

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