Saratoga Company issued bonds with a face value of $200,000 on January 1, 2018, for $202,716. Saratoga

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Saratoga Company issued bonds with a face value of $200,000 on January 1, 2018, for $202,716. Saratoga uses the fair value option to measure the bonds. At the end of 2018, the carrying value of the bonds is $201,403, and their fair value is $203,780. The change in fair value relates to a change in interest rate. What is the entry to record the fair value adjustment?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Intermediate Accounting

ISBN: 978-0134730370

2nd edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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