$19.$ What is the fair value option? Briefly describe the controversy of applying the fair

value option to financial liabilities.

$20.$ 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, assum$-$ ing $($a$)$ no change in credit risk, and $($b$)$ the change is due to a change in credit risk.

$22.$ What is off$-$balance$-$sheet financing? Why might a company be interested in using off$-$balance$-$sheet financing?

$25.$ What are the types of situations that result in troubled debt?