Please only answer the questions under BE 813. The answers should be in good accounting format.

Impairment invested in a 7% bond issued by S Company at par for $600.000 which would loss: low credit 31, 2024. In the worst case scenario of a default event, S Company is not expected to be able to pay risk interest in 2023 and 2024 and the principal payment due on December 31, 2024. However, existing O Lo8-7 cash reserves are sufficient to pay interest due in 2020, 2021, and 2022. On January 3, 2020, the credit quality of S Company was good and the probability of default during the first 12 month to December 31. 2020, was 0.5%. The probability remained stable throughout the period. Ignore discounting. What stage of impairment loss would best describe the state of S Company bonds during 2020 ? What is the loss allowance at December 31,2020 ? BE 8-13 (This is a continuation of BE8-12.) Impairment On December 31,2021, the credit quality of S Co deteriorated significantly due to poor market loss; significant conditions but S Co did not default on the interest payment. The probability of default during the deterioration in next 12 months to December 31,2022 , was 5% and the probability of default during the remaining credit quality lifetime to December 31,2024 , was 25%. Apply discounting at 7%. O LO8-7 What stage of impairment loss would best describe the state of S Company bonds during 2021 ? What is the loss allowance at December 31,2021 ? What is the interest revenue to be reported for 2021? BE 8-14 (This is a continuation of BE8-12.) impairment On December 31, 2023, S Co defaulted on the interest payment due on this date. S Co is highly loss. default unlikely to be able to pay the interest for the remaining periods and the principal at maturity date. event The probability of default on remaining payments was assessed at 90%. Apply discounting at 7%. O LO8-7 What stage of impairment loss would best deseribe the state of S Company bonds during 2022 ? What is the loss allowance at December 31, 2022? What is the interest revenue to be reported for 2022