Question
Pierre Company has a 12% note payable with a carrying value of $20,000. Pierre applies the fair value option to this note; given an increase
Pierre Company has a 12% note payable with a carrying value of $20,000. Pierre applies the fair value option to this note; given an increase in market interest rates, the fair value of the note is $22,600. Prepare the entry to record the fair value option for this note.
Prepare the entry to record the fair value option for this note, assuming the change is due to a change in credit risk.
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
