Waterway Industries has notes receivable that have a fair value of $959000 and a carrying amount of $1270000

Accounting Aug 28, 2020

Waterway Industries has notes receivable that have a fair value of $959000 and a carrying amount of $1270000. Waterway decides on December 31, 2020, to use the fair value option for these recently-acquired receivables. Which of the following entries will be made on December 31, 2020 to record the unrealized holding gain/loss?

Unrealized Holding Gain or Loss?Equity 311000

Notes Receivable 311000

Unrealized Holding Gain or Loss?Income 311000

Notes Receivable 311000

Unrealized Holding Gain or Loss?Income 311000

Notes Receivable 311000

Unrealized Holding Gain or Loss?Equity 311000

Expert Solution

Correct option is 2). Unrealized Holding Gain or Loss?Income 311000

Notes Receivable 311000

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