Question: Reporting Bonds Using the Fair Value Option a. Record the issuance of bonds on January 1 of Year 1. b. Record the interest payment on

Reporting Bonds Using the Fair Value Option a. Record the issuance

Reporting Bonds Using the Fair Value Option a. Record the issuance of bonds on January 1 of Year 1. b. Record the interest payment on June 30 of Year 1. c. Record the interest payment on December 31 of Year 1. d. At December 31 of Year 1, the market rate on the bonds drops to 7.5% due to a general increase in market risk. Record the adjustment of bonds payable to fair value. - Note: Round your answers to the nearest whole dollar

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