Saratoga Company issued bonds with a face value of $300,000 on January 1, 2022, for $306,000. Saratoga
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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?
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Related Book For
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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