Presented below is selected information related to the financial instruments of Dawson Company at December

$3$

$1$

$,$

$2$

$0$

$2$

$5$

$.$

$$This is Dawson Company

$$

s first year of operations.

$$

$$

Carrying Amount

$$

Fair Value

$($

at December

$3$

$1$

$)$

Investment in debt securities

$($

intent is to hold to maturity

$)$

$$

$

$3$

$6$

$,$

$3$

$0$

$0$

$$

$

$$

$3$

$7$

$,$

$2$

$0$

$0$

Investment in Chen Company stock

$$

$8$

$6$

$9$

$,$

$3$

$0$

$0$

$$

$$

$9$

$8$

$2$

$,$

$8$

$0$

$0$

Bonds payable

$$

$2$

$4$

$1$

$,$

$1$

$0$

$0$

$$

$$

$2$

$1$

$6$

$,$

$2$

$0$

$0$

Instructions

Dawson elects to use the fair value option for these investments. Assuming that Dawson

$$

s net income is $

$9$

$8$

$,$

$4$

$0$

$0$

$$in

$2$

$0$

$2$

$5$

$$before reporting any securities gains or losses, determine Dawson

$$

s net income for

$2$

$0$

$2$

$5$

$.$

$$Assume that the difference between the carrying value and fair value is due to credit deterioration.