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Business, 20.10.2021 21:10 callie2411

Gainey Resources purchased $100,000 worth of 8%, $1,000 par value, 10-year term bonds from Camarena Company on July 18, 2017, for $103,200. Beginning in 2019, Camarena has been unable to pay their bond interest payments, and the market price of the bonds has continued to drop. In 2020, the market price of the bonds was $65,700. After testing, Gainey decided that they would likely never recover more than 80% of their initial investment. According to Gainey, these bonds have suffered impairment. should be amortized more rapidly than normal. have suffered unrecoverable loss. should be written off completely.

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Gainey Resources purchased $100,000 worth of 8%, $1,000 par value, 10-year term bonds from Camarena...

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