Using the information provided in BE16-5. prepare the entry to record the fair value adjustment if Ruban plans to hold the bonds to generate cash flows by selling the bonds.

Data from BE16-5

Ruban Company, an IFRS reporter, acquired $3,500,000 face value, 8 % bonds on January 1 of the current year when the market rate of interest was 10%. Ruban plans to hold the bonds to generate cash flows by collecting contractual cash flows but could sell them if needed, and it passes the SPPI test. Interest is paid annually each December 31. Ruban purchased the bonds, which mature in 12 years, for $3,023,042. Ruban amortizes the discount using the effective interest rate method. The fair value of the bonds at the end of the year is $3,000,000