Earlier in the year, Oliver Industries issued $1 million of 7% bonds at face value. Oliver decided to use the fair value option for these bonds. Now, on December 31, the value of the bonds has dropped to $925,000 due to an increase in interest rates. In this situation, Oliver should record a ________ in its Bonds Payable account.

Multiple choice

$75,000 debit

$75,000 credit

$925,000 credit

$925,000 debit