Question: Bloom does not plan to sell the Taylor bonds prior to maturity, and does not believe it is more likely than not that it will

Bloom does not plan to sell the Taylor bonds prior to maturity, and does not believe it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their fair value. Of the $

540, 000

decline in fair value, Bloom attributes $

320, 000

to credit losses, and $

220, 000

to noncredit losses. Record the noncredit losses if the Taylor bonds are not sold.

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