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Which of the following is NOT true about GAAP rules for using the fair value option for valuing debt, such as a company's bonds payable?

A company can choose whether or not to use the option separately for each type of liability

If it uses this method, any changes in the market value of its bonds due to general economic conditions, such as changing interest rates, will be reflected in net income.

If it uses this method, any reductions in the market value of its bonds due to a deterioration in the company's own credit rating will result in a gain being shown in net income.

$$ The company must choose whether or not to use the fair value option for a particular liability at the time the liability is incurred.