1. A company selected the fair value option to record its bond liabilities. In 2019, the company has an outstanding bond with a carrying value of $604,000, and a fair value of $600,000. The following year, the carrying value was $599,000 and the fair value was $603,000. In both instances, the change was due to credit risk. The journal entry to record the fair value adjustment for 2020 will include

2. A company has AFS debt securities. In 2019, the bond had a carrying value of $600,000, and a fair value of $604,000. The following year, the carrying value was $603,000 and the fair value was $599,000. The journal entry to record the fair value adjustment for 2020 will include