Exercise 17-23 On January 2, 2017, Bonita Company purchases a call option for $330 on Merchant common stock. The call option gives Bonita the option to buy 990 shares of Merchant at a strike price of $46 per share. The market price of a Merchant share is $46 on January 2, 2017 (the intrinsic value is therefore $0). On March 31, 2017, the market price for Merchant stock is $49 per share, and the time value of the option is $210. Prepare the journal entry to record the purchase of the call option on January 2, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Account Titles and Explanation Credit Jan. 2, 2017 Prepare the journal entries to recognize the change in the fair value of the call option as of March 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Mar. 31, 2017 To record the time value change.) Mar. 31, 2017 To record the change in intrinsic value.) What was the effect on net income of entering into the derivative transaction for the period January 2 to March 31, 2017? Unrealized Holding