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16 June, 06:25

Calrissian Corporation holds an available-for-sale debt investment. The amortized cost is $40,000; the fair value is $30,000; and expected credit losses are $25,000. What is the amount of the impairment loss

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  1. 16 June, 06:41
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    The reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset lower than the book value of the asset then there is an impairment.

    Amortized Cost / Book value = $40,000

    Fair Value = $30,000

    Debt investment is also impaired as its fair value is less than the amortized cost which is the book value.

    Impairment Loss = $40,000 - $30,000

    Impairment Loss = $10,000
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Home » Business » Calrissian Corporation holds an available-for-sale debt investment. The amortized cost is $40,000; the fair value is $30,000; and expected credit losses are $25,000. What is the amount of the impairment loss
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