Acc423 Intermediate Accounting: BE17-10 Hillsborough Co. has an available-for-sale investment

Acc423 Intermediate Accounting


BE17-10
Hillsborough Co. has an available-for-sale investment in the bonds of Schuyler with a carrying (and fair) value of $70,000. Hillsborough determined that due to poor economic prospects for Schuyler, the bonds have decreased in value to $60,000. It is determined that this loss in value is other-than temporary.

Prepare the journal entry, if any, to record the reduction in value.

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