Business, 06.12.2019 21:31 kashusledbetter

Sparrow corporation has recently acquired notes receivable that have a fair value of $405,000 and a carrying amount of $310,000. sparrow decides on december 31, 2017, to use the fair value option for the first valuation of these receivables. which of the following is incorrect?

(a) an unrealized holding gain of $95,000 will be reported as part of net income for the year ended december 31, 2017.
(b) interest revenue will be reported as part of net income for the year ended december 31, 2017.
(c) sparrow must value these receivables at fair value in all subsequent periods in which it holds these receivables.
(d) sparrow must value all similar receivables at fair value in all subsequent periods in which it holds this type of receivable.

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Sparrow corporation has recently acquired notes receivable that have a fair value of $405,000 and a...

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