On December 31, 2018, Hunter Corporation Has Elected to Use

On December 31, 2018, Hunter Corporation has elected to use the fair value option for one of its notes receivable. The note was accepted in late September, 2018 from a customer who was unable to pay its accounts receivable. The transaction with the customer had been delivery of accounting services valued at €25,000. The customer made a partial payment, resulting in a carrying value for the note of €22,000. At year-end, Hunter Corporation estimates the fair value of the note to be €17,500. Which of the following is incorrect regarding this note?

A) Hunter will report the note on its statement of financial position at €17,500.
B) Hunter will report an unrealized loss of €7,500 in its income statement for the year ended December 31, 2018.
C) Hunter will be required to use the fair value option for this note for the duration of its existence.
D) In 2019, Hunter will calculate the unrealized holding gain or loss as the net change in the fair value of the receivable from 2018 to 2019, exclusive of interest revenue recognized but not recorded.