Marble Inc. Issued 10-year, $100,000, 10% annual interest-bearing bonds on June 30 of Year 1 at a
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Marble Inc. Issued 10-year, $100,000, 10% annual interest-bearing bonds on June 30 of Year 1 at a discount. At the time the bonds were issued, Marble Inc. elected to account for the bonds using the fair value option. On December 31 of Year 1, the bonds have a carrying value of $88,800. Assume that the fair value of the bonds is $80,000 on December 31, Year 1. What would the adjusting entry include if:
the change in the fair value is due to general interest rate changes?
the change in fair value is due entirely to a change in the credit risk of the debt?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: