issued to Barclay ’ s Bank and has the following data related to the carrying and fair value for these notes .
Carrying Value
Fair Value December 31 , 2014 $ 56,930 $ 56,930 December 31 , 2015 46,660 45,060 December 31 , 2016 38,850 40,980
( a ) Prepare the journal entry at December 31 ( Fallen ’ s year-end ) for 2014 , 2015 , and 2016 , to record the fair value option for these notes . ( If no entry is required , select " No Entry " for the account titles and enter 0 for the amounts . Credit account titles are automatically indented when amount is entered . Do not indent manually .)
( b ) At what amount will the note be reported on Fallen ’ s 2015 balance sheet ?
Note to be reported on Fallen ’ s 2015 balance sheet $
( c ) What is the effect of recording the fair value option on these notes on Fallen ’ s 2016 income ?
The effect of recording the fair value option would result in unrealized holding