Fair value of the bond-prepare the journal entries

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Purchased HTM investment on January 2, 2016, of $233,339 in Eiffel Corporation’s $240,000 face value, 3 percent bond, yielding 4 percent to maturity, interest paid annually on December 31. On December 31, 2017, the fair value of the bond is $180,000, and the decline is determined to be other than temporary.

Prepare the journal entries. Round your answers to the nearest dollar.

Reference no: EM131220270

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