Question

Crane Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020.

Amortized cost		$50,700
Fair value		41,400
Expected credit losses		12,400

What is the amount of the credit loss that Crane should report on this available-for-sale security at December 31, 2020?

Amount of the credit loss

$

Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at December 31, 2020. (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.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2020	enter an account title to record the time value change on March 31, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the change in intrinsic value on March 31, 2017	enter a credit amount	enter a credit amount

Assume that the fair value of the available-for-sale security is $54,400 at December 31, 2020, instead of $41,400. What is the amount of the credit loss that Crane should report at December 31, 2020?

Amount of the credit loss

$enter a dollar amount of the Unrealized Holding gain or loss for the period January 2 to March 31, 2017

Assume the same information as for part (c). Prepare the journal entry to record the credit loss, if necessary (and any other adjustment needed), at December 31, 2020. (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.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2020	enter an account title to record the time value change on March 31, 2017	enter a debit amount	enter a credit amount
	enter an account title to record the change in intrinsic value on March 31, 2017	enter a credit amount	enter a credit amount

Answer 1