Redmond Company has one asset, a bond issued by Issuing Company that Redmond purchased (on the day it was issued, December 30 of Year 1) as an investment. Redmond also has only one liability, one of its own bonds that was issued to finance the purchase of the Issuing Company Bond investment. This bond was also issued on December 30 of Year 1. Julian Mark, the sole owner of Redmond Company, was able to cleverly start the company with no initial shareholder investment of cash, but he is still the legal owner of the company. Both bonds have the same terms: $1,000 face value, 30-year life, 8% coupon rate, and single interest payments made at the end of each year (starting with December 31 of Year 2). On their issuance dates, both bonds were associated with a market interest rate of 8%. As a result, the issuance price of both bonds was $1,000. Redmond Company has decided to account for both the bond asset and the bond liability using the fair value option. On December 31 of Year 1, one day after the bonds were issued, some very bad news came out about Redmond Company. Redmond was unable to obtain key building permits, throwing all of Redmond's expansion plans into chaos. Given this suddenly-increased risk, the market interest rate associated with Redmond's bonds payable increased from 8% to 23% overnight. The market interest rate associated with the Issuing Company bond (owned by Redmond Company) stayed at 8%. On December 30 of Year 1, the owner's equity amount for Redmond Company is $0; all of the financing to obtain the $1,000 bond investment asset was obtained through the issuance of the Redmond Company bond liability. On December 31, AFTER the increase in the market interest rate associated with the Redmond Company bond liability, what is the owner's equity amount for Redmond Company? Positive $349 Positive $651 Negative $349 Negative $651