Marin Company loans Splish Company $$1,930,000$ at $6\%$ for $3$ years on January $1,2025.$ Marin intends to hold this loan to maturity and has the financial ability to do so$.$ The fair value of the loan at the end of each reporting period is as follows.

December $31,2025$$$1,981,000$

December $31,2026,1,951,000$

December $31,2027,1,930,000$

Prepare the journal entries at December $31,2025,$ and December $31,2027,$ for Marin related to these bonds, assuming $($a$)$ it does not use the fair value option, and $($b$)$ it uses thef fair value option. Interest is paid on January $1.($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem.$)$

No$.$

Date

Account Titles and Explanation

Debit

Credit

$($a$)$