Coronado Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 12% and has a carrying value of $13,000. At year - end, Coronado's borrowing rate (credit risk) has declined; the fair value of the note payable is now $14,600. (a) Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number e.g. - 2,945 or parentheses e.g. (2,945).) Unrealized holding gain or loss $enter the unrealized holding gain or loss in dollars eTextbook and Media List of Accounts Attempts: 0 of 6 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Coronado Corporation has elected to use the fair value option for one of its notes payable.
The note was issued at an effective rate of 12% and has a carrying value of $13,000. At year -
end, Coronado's borrowing rate (credit risk) has declined; the fair value of the note payable is
now $14,600. (a) Determine the unrealized holding gain or loss on the note. (Enter loss using
either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Unrealized holding gain or loss $enter the unrealized holding gain or loss in dollars eTextbook
and Media List of Accounts Attempts: 0 of 6 used (b) The parts of this question must be
completed in order. This part will be available when you complete the part above.
Transcribed Image Text:Coronado Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 12% and has a carrying value of $13,000. At year - end, Coronado's borrowing rate (credit risk) has declined; the fair value of the note payable is now $14,600. (a) Determine the unrealized holding gain or loss on the note. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Unrealized holding gain or loss $enter the unrealized holding gain or loss in dollars eTextbook and Media List of Accounts Attempts: 0 of 6 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
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