On January 2, 2020, Crane Corporation purchased a call option for $340 on Walters common shares. The call option gives Crane the option to buy 910 shares of Walter at a strike price of $25 per share any time during the next six months. The market price of a Walter share was $25 on January 2, 2020 (the intrinsic value was therefore $0). On March 31, 2020, the market price for Walter stock was $37 per share, and the fair value of the option was $15,800.

Prepare the journal entry to record the purchase of the call option on January 2, 2020. (Credit account titles are automatically indented when the 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	Debit	Credit
January 2, 2020	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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List of Accounts

Prepare the journal entry to recognize the change in the call options fair value as at March 31, 2020. (Credit account titles are automatically indented when the 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	Debit	Credit
March 31, 2020	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

What was the effect on net income of entering into the derivative transaction for the period from January 2 to March 31, 2020?

The

select an option gain increasesloss decreases

net income for the period January 2 to March 31, 2020 by

$enter a dollar amount .