Presented below is selected information related to the financial instruments of Dawson Ltd. at December 31, 2019 (amounts in thousands). This is Dawson Ltd.'s first year of operations.

Instructions
a. Dawson elects to use the fair value option whenever possible. Assuming that Dawson's net income is ¥100,000 in 2019 before reporting any financial instrument gains or losses, determine Dawson's net income for 2019.
b. Record the journal entry, if any, necessary at December 31, 2019, to record the fair value option for the bonds payable.

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Carrying Amount Fair Value (at December 31) Debt investments (intent is to hold for collection) Bonds payable ¥ 41,000 ¥ 40,000 220,000 195,000