Question $2$ of $6$

$\frac{2\mathrm{.}67}{4}$

Carla Company commonly issues long$-$term notes payable to its various lenders. Carla has had a pretty good credit rating such that its effective borrowing rate is quite low $($less than $8\%$ on an annual basis$).$ Carla has elected to use the fair value option for the long$-$term notes issued to Barclay's Bank and has the following data related to the carrying and fair value for these notes. Any changes in fair value are due to changes in market rates, not credit risk.

$\backslash$table$[[,\backslash$table$[[$Carrying Value$],[($before fair value adjustment$)]],$Fair Value$],[$December $31,2025,$$$50,400,$$$50,400$