Morley Manufacturing Has Notes Receivable That Have a Fair Value

Morley Manufacturing has notes receivable that have a fair value of $810,000 and a carrying amount of $620,000.Morley decides on December 31, 2015, to use the fair value option for these recently-acquired receivables.Which of the following statements is correct regarding the election of the fair value option by Morley?

A) Morley can elect to use the fair value option or amortized cost for these notes at each statement of financial position date.
B) Morley reports the receivables at fair value, with any unrealized holding gains and losses reported as a separate component of comprehensive income.
C) The unrealized holding gain is the difference between the fair value and the carrying amount.
D) All of the choices are correct regarding the fair value option.