On January 2, 2020, Pharoah Corporation purchased a call option for $345 on Walter's common shares. The call option gives Pharoah the option to buy 1,110 shares of Walter at a strike price of $28 per share any time during the next six months. The market price of a Walter share was $28 on January 2, 2020 (the intrinsic value was therefore $0). On March 31, 2020, the market price for Walter stock was $39 per share, and the fair value of the option was $16,800. 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 January 2, 2020 Account Titles and Explanation Debit Credit Prepare the journal entry to recognize the change in the call option's 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 March 31, 2020 Account Titles and Explanation Debit Credit What was the effect on net income of entering into the derivative transaction for the period from January 2 to March 31, 2020? The net income for the period January 2 to March 31, 2020 by