17. Carlos Company has a non-trading investment in the 10%, 10-year bonds of Plack Company. The investment's carrying value is $3,200,000 at December 31, 2021. On January 2, 2022, Carlos learns that Plack Company has lost its primary manufacturing facility in an uninsured fire. As a result, Carlos determines that the investment is impaired and now has a fair value of $2,300,000. In June, 2023, Plack Company has succeeded in rebuilding its manufacturing facility, and its prospects have improved as a result.If Carlos Company determines that the fair value of the investment is now $3,900,000 and is using GAAP for its external financial reporting, which of the following is true?

Group of answer choices

Carlos is prohibited from recording the recovery in value of the impaired investment.

Carlos may record a recovery of $1,600,000.

Carlos may record a recovery of $900,000.

Carlos may record a recovery of $700,000.