Practice Exercise 14-5 Marin Inc. commonly issues long-term notes payable to its various lenders. The company has a good credit rating. As a result, its effective borrowing rate is less than 7% on an annual basis. Marin has elected to use the fair value option for the long-term notes Issued to First National Bank and has the following data related to the carrying and fair value for these notes. All changes In fair value are due to changes in market rates, not credit risk. Year Ending Carrying Value Fair Value $89,700 86,700 69,400 68,800 2017 2018 2019 $92,000 85,000 Your answer is partially correct. Try again. Prepare the journal entries at December 31 (Marin's year-end) for 2017, 2018, and 2019, to record the fair value option for these notes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2017 Notes Payable 2300 Unrealized Holding Gain or Loss Income 2300 Dec. 31, 2018 Unrealized Holding Gain or Loss Income 4000 Notes Payable 4000 Dec. 31, 2019 Notes Payable 4600 Unrealized Holding Gain or Loss Income 4600