If a long-term investment suffers a permanent decline in value,a loss only has to be recorded if the investment is sold.

Name: If a long-term investment suffers a permanent decline in value,a loss only has to be recorded if the investment is sold.
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The decline in value of a long-term investment is considered an impairment loss and must be recognized even if the investment has not been sold. The loss is recorded by reducing the investment's book value to its new fair value.

If a Long-Term Investment Suffers a Permanent Decline in Value,a