Required:
In a short research paper (1 - 3 pages), discuss the following issues as they relate to BBC and provide the appropriate FASB ASC references. Create a clear and organized paper that accomplishes the goals of the assignment, employs appropriate tools (FASB ASC), and demonstrates your strategy for solving the problem and a defensible and appropriate solution to the problem using good composition skills, effective organization, and effective writing style.
1. For the Red Raider investment, determine if BBC should record an other-than- temporary impairment as of December 31, 20X1, and if so, for what amount. Does the answer change if BBC does not intend to sell the security and it is not more likely than not that it will be required to sell the security?
2. For the AllHeart stock investment, determine if BBC should record an other-than- temporary impairment as of December 31, 20X1, and if so, for what amount.
3. Assuming BBC has determined its investment in SuperBowl Incorporated stock is other-than-temporarily impaired, how much should be recorded as an impairment charge as of December 31, 20X1?
4. Assume the same facts as in 3 above, except that BBC has not yet determined whether an impairment exists or the amount of any possible impairment. For SuperBowl Incorporated, would BBC still conclude that the investment is other-than-temporarily impaired, and would the impairment charge as of December 31, 20X1, be different if the stock price at issuance of the financial statements (i.e., as of January 31, 20X2) was $95 and not $75?