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Aggarwal Corporation issued $1 million of 7%, 10-year bonds on July 1, 2022, at face value. Interest is payable each December 31. The company has

Aggarwal Corporation issued $1 million of 7%, 10-year bonds on July 1, 2022, at face value. Interest is payable each December 31. The company has chosen to apply the fair value option in accounting for the bonds. A risk assessment on December 31, 2023, shows that Aggarwals credit risk has increased, and as a result of the increased credit risk, the fair value of the bonds is $900,000 on that date.

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