Question: Gretta Company purchased a debt investment on June 15, 2021, and classified it as held to maturity. On December 31, 2021, the investment had a

Gretta Company purchased a debt investment on June 15, 2021, and classified it as held to maturity. On December 31, 2021, the investment had a carrying value of $8,500 and a fair value of $8,000. On that date, the present value of the future cash flows from the debt investment is $8,100. On December 31, 2022, the carrying value, fair value, and present value of the future cash flows from the investment are $7,900, $7,800, and $7,800, respectively. What is the amount of the impairment loss/gain in 2021 and 2022? Where does Gretta report the impairment loss/gain?

Step by Step Solution

★★★★★

3.34 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The allowance balance is the difference between the carrying value a... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

Gretta Company purchased a debt investment on June 15, 2017, and classified it as held to maturity. On December 31, 2017, the investment had a carrying value of $8,500 and a fair value of $8,000. On...

Gretta Company purchased a debt investment on June 15, 2020, and classified it as available for sale. On December 31, 2020, the investment had a carrying value of $8,500 and a fair value of $8,000....

Gretta Company purchased a debt investment on June 15, 2016, and classified it as available for sale. On December 31, 2016, the investment had a carrying value of $8,500 and a fair value of $8,000....

Santee Company purchased a debt investment on June 15, 2017, and classified it as held to maturity. On December 31,2017 , the investment had a carrying value of $9,050 and a fair value of $8,450. On...

Can you please help with the problems in these word documents? Thank you AC301 Unit 3 Problem 12-2 Your answer is incorrect. Try again. Fields Laboratories holds a valuable patent (No. 758-6002-1A)...

Part 1.marks Consider the information presented in Part (Al. In addition consider the following While Mr. Ahmed was gathering the information, he discovered the following 1 The company had equity...

Tymen Jungle Inc. Statement of financial position As at December 31 (in '000s) Carrying value Fair Remaining value useful life/term to 20X7 20X6 20X6 Cash maturity $ 68 $ 35 Accounts receivable 75 48...

Metia Company purchased a debt investment in 2016 and classified it as held to maturity. The carrying value on December 31, 2016, is $250,000. At December 31, 2016, the fair value of the investment...

Melia Company purchased a debt investment in 2020 and classified it as held to maturity. The carrying value on December 31, 2020, is $250,000. At December 31, 2020, the fair value of the investment...

Canaans Curios Corp. Canaans Curios Corp. (CCC) is a company located in Western Canada that reports its financial results in accordance with IFRS. CCC has acquired shares in Tymen Jungle Inc. (TJI)....

Two cannonballs, A and B, are fired from the ground with identical initial speeds, but with A larger than B. (a) Which cannonball reaches a higher elevation? (b)Which stays longer in the air? (c)...

Some events change aggregate supply from SAS0 to SAS1 Describe two events that could have created this change in aggregate supply. What is the equilibrium after aggregate supply changed? If potential...