Muir, Ltd. measures its trading securities at fair value. It has liabilities that it also measures using the fair value option. Muir has bonds outstanding (originally sold for $2,400,000) in the amount of $2,000,000 with a current bond premium of $349,000. The bonds were selling at 101 on the market on December 31. If its Fair Value Adjustment on Bonds Payable account currently contains a debit amount of $430,000, what adjustment is necessary to report the value of the bonds under the fair value option.
A)

\begin{array} { | c | c | c | c | } \hline \text { Date } & \text { Account } & \text { Debit } & \text { Credit } \\\hline \text { December 31 } & \text { Unrealized Loss on Bonds Payable } & 81,000 & \\\hline& \begin{array} { l } \text { Fair Value Adjustment on Bonds } \\\text { Payable }\end{array} & & 81,000 \\\hline\end{array}

\begin{array} { | c | c | c | c | } \hline \text { Date } & \text { Account } & \text { Debit } & \text { Credit } \\\hline \text { December 31 } & \text { Unrealized Loss on Bonds Payable } & 101,000 & \\\hline & \begin{array} { l } \text { Fair Value Adjustment on Bonds } \\\text { Payable }\end{array} & & 101,000 \\\hline\end{array}

\begin{array}{|c|c|c|c|}\hline \text { Date } & \text { Account } & \text { Debit } & \text { Credit } \\\hline \text { December } 31 & \begin{array}{l}\text { Fair Value Adjustment on Bonds } \\\text { Payable }\end{array} & 101,000 & \\\hline&\text { Unrealized Gain on Bonds Payable }&&101,000\\\hline\end{array}

\begin{array}{|c|c|c|c|} \hline\text {Date} &\text { Account } & \text {Debit }&\text { Credit }\\\hline \text { December 31} &\text { Fair Value Adjustment on Bonds} & & \\&\text { Payable} & 81,000 & \\\hline &\text { Unrealized Gain on Bonds Payable} & & 81,000\\\hline\end{array}

IFRS Rules for Reclassification of Short-Term Debt Are Similar to U.S

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