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Determine the unrealized holding gain or loss on the note

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Reference no: EM133185100

Question - Headland Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 10% and has a carrying value of $18,000. At year-end, Headland's borrowing rate (credit risk) has declined; the fair value of the note payable is now $19,600.

Required -

1. Determine the unrealized holding gain or loss on the note.

2. Make the entry to record any unrealized holding gain or loss.

Reference no: EM133185100

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