Use the Following Information to Answer Questions 7 and 8

question 83

Short Answer

Use the following information to answer Questions 7 and 8.
Johnstone Company has a loan receivable with a carrying value of $125,000 at December 31, 2013. On January 1, 2014, the borrower, Ralph Young Industries, declares bankruptcy, and Johnstone estimates that it will collect only 45% of the loan balance.
-Which of the following entries would Johnstone make to record the impairment under IFRS?

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Definitions:

Military Self-Sufficiency

The capability of a country to fulfill its military needs without relying on imports from other countries.

Terms Of Trade

An economic measure of a country's export prices relative to its import prices, indicating the quantity of imports that can be exchanged for a given amount of exports.

Domestic Currency

The official currency issued by a country's central bank or monetary authority, used within the domestic economy.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with a fixed amount of resources.