Saratoga Company issued bonds with a face value of $300,000 on January 1, 2022, for $306,000. Saratoga
Question:
Saratoga Company issued bonds with a face value of $300,000 on January 1, 2022, for $306,000. Saratoga uses the fair value option to measure the bonds. At the end of 2022, the carrying value of the bonds is $304,702 and their fair value is $301,600. Half of the fair value change relates to instrument specific credit risk. What is the entry to record the fair value adjustment?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
We compare the carrying value to the fair value to obtain t...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3+ Reviews
10+ Question Solved
Related Book For 
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Question Posted:
