On January 2, 2025, Pronghorn Company purchases a call option for $300 on Merchant common stock. The call option gives Pronghorn the option to buy 980 shares of Merchant at a strike price of $50 per share. The market price of a Merchant share is $50 on January 2, 2025 (the intrinsic value is therefore $0). On March 31, 2025, the market price for Merchant stock is $52 per share, and the time value of the option is $180. Prepare the journal entry to record the purchase of the call option on January 2, 2025. (List debit entry before credit entry. 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.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts Prepare the journal entries to recognize the change in the fair value of the call option as of March 31, 2025. (List all debit entries before credit entries. 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.) Account Titles and Explanation (To record the time value change.) (To record the change in intrinsic value.) eTextbook and Media List of Accounts Debit Credit What was the effect on net income of entering into the derivative transaction for the period January 2 to March 31, 2025? Unrealized Holding $