On January 1, 2018, Ross Corporation issued bonds with a maturity value of $200,000; the bonds stated rate of interest equaled the market interest rate on the issue date. On December 31, 2018, the market value of the bonds was $188,926; on December 31, 2019, the market value of the bonds was $191,325. Which of the following correctly describes Ross Corporations financial reporting if Ross elects to measure the bond liability using the fair value accounting option?

Multiple Choice

• For the year ending December 31, 2019, Ross will report an unrealized holding loss of $2,399 in its income statement.

• For the year ending December 31, 2019, Ross will report an unrealized holding loss of $8,675 in its income statement.

• For the year ending December 31, 2018, Ross will report an unrealized holding loss of $11,074 in its income statement.

• For the year ending December 31, 2019, Ross will report an unrealized holding gain of $8,675 in its income statement.