Fair value option You have recently been hired at Caterpillar as an accountant. Your company is about to issue a new bond for $10,000,000 to fund a plant expansion and Chris Keen, your supervisor is wondering if your company should consider using the fair value option for accounting for the bond. Chris has recently been to a continuing education program where the fair value option for financial instruments was discussed. 

Chris has asked you to investigate. Bond term is 10 years, stated rate is 3%. Interest is paid annually in 12/31. Projected issuance date: 1/1/2023. Market rate on date of issuance: 3.75%. Projected market rates for the next 10 years, at the end of year: 2023 5.00% 2024 5.50% 2025 6.00% 2026 6.50% 2027 6.75% 2028 6.10% 2029 5.50% 2030 5.25% 2031 4.00% 2032 3.75% 1. Research the FASB Codification to if the fair value option is indeed an option (cite reference from codification). If fair value is a choice, when can this choice be made? How is then fair value measured for liabilities? 

What is the required reporting in the financial statements, and (if applicable) disclosure in the notes?