Prepare the journal entries for Hansen to record the events

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Problem - Impairment On June 1, 2019, Hansen Company purchased ten $1,000 Francisco Company bonds at -par and classified them as held-to-maturity. In 2020, Francisco experienced financial difficulties and on Dec 31, 2020, based on an evaluation of the investment, Hansen determined that expected credit losses are $4,000. In 2021, Francisco improved its financial condition, and, on Dec 31, 2021, Hansen believed that expected credit losses would only be $2,000.

Required - Prepare the journal entries for Hansen to record the above events under U.S. GAAP.

Reference no: EM132887859

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