Sellers Corporation had relatively large idle cash balances and invested them as follows in securities to be held as non-strategic investments:
On December 31, 2014, the fair values of the investments held by Sellers Corporation were: Royal Bank, $27.50; Imperial Oil, $50.13; and BCE, $13.50. Assume the fair value and carrying value of the Minco bond was equal.
Required 1. Prepare an amortization schedule for the Minco Inc. bond showing only 2014. 2. Prepare journal entries to record the investment activity including the appropriate impairment adjustment on December 31. 3. Show how the investments will be reported on the December 31, 2014, balance sheet. Analysis Component: If the impairment adjustment is not recorded by Sellers Corporation, what is the impact on its financialstatements?