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6) Fallen Company commonly issues long-term notes payable to its various lenders. Fallen has had a pretty good credit rating such that its effective borrowing rate is quite low (less than 8% on an annual basis). Fallen has elected to use the fair value option for the long-term notes 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 7) Holiday Company issued its 7%, 25-year mortgage bonds in the principal amount of $3,019,000 on January 2, 2000, at a discount of $158,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided that the bonds could be called for redemption in total but not in part at any time before maturity at 104% of the principal amount, but it did not provide for any sinking fund. On December 18, 2014, the company issued its 11%, 20-year debenture bonds in the principal amount of $4,277,000 at 101, and