Antique Company has notes receivable that have a fair value of $920,000 and a carrying amount of $710,000. Antique decides on December 31, 2014, to use the fair value option for these recently-acquired receivables. The adjusting entry to record this change will include a:

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When an entity uses the fair value option for its notes receivable, any difference between the carrying amount and fair value is recognized in unrealized holding gain or loss income. In this case, the fair value of the notes receivable is $920,000, and the carrying amount is $710,000, resulting in a difference of $210,000. Therefore, the adjusting entry to record this change will include a credit to Unrealized Holding Gain or Loss Income for $210,000.

Antique Company Has Notes Receivable That Have a Fair Value