Current Attempt in Progress

On January $1,2024,$ Blossom Inc. purchased an investment in Drexall Inc. bonds for $$167,000,$ at par value. The bonds pay interest on

December $31$ each year. However, the company has determined that, due to a default on making interest and principal payments, there

is objective evidence of impairment, which represents a triggering or loss event. The present value of the discounted revised cash

flows is $$116,100$ using the original effective interest rate and $$106,100$ using the current market interest rate. The market value of

the bonds is $$96,100.$

Prepare the journal entries for impairment under ASPE and IFRS, respectively, assuming the company uses the amortized cost model.

$($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,

select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles

Debit

Credit

ASPE

IFRS

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List of Accounts