Crane 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, Cranes 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. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

1.

Unrealized Holding Gain or Loss:

2. Prepare the entry to record any unrealized holding gain or loss