Elaina Company has the following investments as of December 31, 2025:
Investments in common stock of Laser Company: $1,500,000
Investment in debt securities of FourSquare Company: $3,300,000
In both investments, the carrying value and the fair value are the same at December 31, 2025. Elaina's stock investments do not result in significant influence on the operations of Laser Company. Elaina's debt investment is considered held-to-maturity. At December 31, 2026, the shares in Laser Company are valued at $1,100,000, and the debt securities of FourSquare are valued at $2,500,000 and are considered impaired.
Prepare the journal entry to record the impairment of the debt securities at December 31, 2026.
Assuming the fair value of the Laser shares is $1,400,000 and the value of its debt investment is $2,950,000, what entries, if any, should be recorded in 2027?
Assume that the debt investment in FourSquare Company was available-for-sale, and the expected credit loss was $900,000. Prepare the journal entry to record this impairment on December 31, 2026.