Ramirez Company has a held-for-collection investment in the 6%, 20-year bonds of Soto Company. The investment was

Question:

Ramirez Company has a held-for-collection investment in the 6%, 20-year bonds of Soto Company. The investment was originally purchased for $1,200,000 in 2018. Early in 2019, Ramirez recorded an impairment of $300,000 on the Soto investment, due to Soto's financial distress. In 2020, Soto returned to profitability and the Soto investment was no longer impaired. What entry does Ramirez make in 2020 under
(a) U.S.
(b) IFRS?
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...