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Bramble Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of

Bramble Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 12% and has a carrying value of $20,000. At year-end, Brambles borrowing rate (credit risk) has declined; the fair value of the note payable is now $21,300.

Determine the unrealized holding gain or loss on the note.

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