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?