On June 1, 2013, Hansen Company purchased ten $1,000 Francisco Company bonds at par and classified them

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On June 1, 2013, Hansen Company purchased ten $1,000 Francisco Company bonds at par and classified them as held-to-maturity. In 2014, Francisco experienced financial difficulties and Hansen reduced the carrying value of each bond by 40%. In 2015, Francisco improved its financial condition, and Hansen believed that each bond was now worth $900 based on current market yields.
Required:
1. Prepare the journal entries for Hansen to record the above events under U.S. GAAP.
2. How would your answers change if the company uses IFRS?
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Related Book For  book-img-for-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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