This problem requires that you determine the impairment loss using two different methods. Assume that Ranger...

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This problem requires that you determine the impairment loss using two different methods. Assume that Ranger Corp. uses the effective interest amortization method and the carrying value of the bond after four years is $385,000 (with 6 semi-annual interest periods). Assuming the investment is now valued at $315,000 in the marketplace, hence there is impairment). Required: Record the journal entries for each of the following two impairment methods. (a) The Direct Method General Journal POST DATE ACCOUNT TITLE AND EXPLANATION REF. DEBIT CREDIT (b) The Allowance Method General Journal POST DATE ACCOUNT TITLE AND EXPLANATION REF. DEBIT CREDIT This problem requires that you determine the impairment loss using two different methods. Assume that Ranger Corp. uses the effective interest amortization method and the carrying value of the bond after four years is $385,000 (with 6 semi-annual interest periods). Assuming the investment is now valued at $315,000 in the marketplace, hence there is impairment). Required: Record the journal entries for each of the following two impairment methods. (a) The Direct Method General Journal POST DATE ACCOUNT TITLE AND EXPLANATION REF. DEBIT CREDIT (b) The Allowance Method General Journal POST DATE ACCOUNT TITLE AND EXPLANATION REF. DEBIT CREDIT

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a Direct Method The direct method involves recognizing the impairment loss immediately as a reductio... View the full answer