Question

need help with part A

Exercise 17-21 Your answer is partially correct. Try again. Presented below is selected information related to the financial instruments of Headland Company at December 31, 2017. This is Head and Compa Fair Value (at December Carrying Investment in debt securities (intent is to hold to maturity) Investment in Chen Company stock Bonds payable $36,700 730,600 237.500 $37.700 834,200 212.100 . 2017 bereporting (a) Headland elects to use the fair value option for these financial instruments (the fair valor option for financial abilities in discussed in Chapter 14). Assuming that Headlandsnet comes gains or losses, determine Headland's net income for 2017 (assume that the difference between the carrying value andare is due to credit detention). Google Chrome X duoen wil plus.com/edge shared/tients Headland's net income for 2017 a re autor 103 Backspace (b) Record the journal entry, if any, necessary at December 31, 2017, to record the fair value option for the bonds payable Credit entry is required, select "No Entry for the accountities and enter for the amounts) Date Account Titles and Explanation Dec 31, 2017 Bonds Payable Unrealed Holding Gain or Loss -Income 7 8 9 MR 4 5 OW LIST OF MECOURTS MS T O TEXT LINK TO TEXT LINK TO TEX

Answer 1

	Headland Company
		Carrying Amount	Fair Value(At December 31st)
	Investment in debt securities(Intend to hold to maturity)	$                 36,700.00	$                                           37,700.00
	Investment in Chen Company Stock	$             7,30,600.00	$                                       8,34,200.00
	Bonds Payable	$             2,37,500.00	$                                       2,12,100.00
a)	Net Income before security gain/loss	$                 94,000.00
	Investment in Debt Securities($37700-$36700)	$                   1,000.00
	Investment in Chen Company Stock($834200-$730600)	$             1,03,600.00
	Bonds Payable($237500-$212100)	$                 25,400.00
	Headland's Net Income for 2017	$             2,24,000.00
	Net Income from Investment=Fair value-Carrying Amount
	Net Income from Bonds Payable=Carrying amount less fair value