Question: Sunshine Company Ltd . has a held - for - collection investment in the 6 % , 2 0 - year bonds of Soto Company.

Sunshine Company Ltd. has a held-for-collection investment in the 6%,20-year bonds of Soto Company. The investment was originally purchased for $1,200,000 in 2017. Early in 2020, Sunshine recorded an impairment of $200,000 on the Soto investment, due to Soto's financial distress. In 2021, Soto returned to profitability and the Sote investment was no longer impaired. What entry does Sunshine make in 2021 under (a) GAAP and (b) IFRS?

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