Pierre Company has a 12% note payable with a carrying value of $20,000. Pierre applies the fair
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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 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.
Posted Date: