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: a. debit to unrealized holding gain or loss⎯income for $210,000.b. credit to notes receivable for $210,000.c. credit to unrealized holding gain or loss⎯income for $210,000.d. debit to notes receivable for $920,000.

Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly recorded by bridgeport corporation. 1. bridgeport developed a new manufacturing process, incurring research and development costs of $195,600. the company also purchased a patent for $45,200. in early january, bridgeport capitalized $240,800 as the cost of the patents. patent amortization expense of $12,040 was recorded based on a 20-year useful life. 2. on july 1, 2017, bridgeport purchased a small company and as a result recorded goodwill of $52,000. bridgeport recorded a half-year’s amortization in 2017, based on a 20-year life ($1,300 amortization). the goodwill has an indefinite life. prepare all journal entries necessary to correct any errors made during 2017. assume the books have not yet been closed for 2017.