When an Impairment of an Equity Investment That Is Classified

question 39

Multiple Choice

When an impairment of an equity investment that is classified as available for sale occurs for a reason that is judged to be "other than temporary," the investment is written down to its fair value and the amount of the write-down is:

• A)Recorded as a deferred credit.
• B)Included in net income.
• C)Recorded as deferred asset.
• D)Treated as unrealized.

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Definitions:

Snacks

Small portions of food typically eaten between meals.

Natural Selection

The evolutionary process in which individuals with genetically influenced traits that are adaptive in a particular environment tend to survive and to reproduce in greater numbers than do other individuals; as a result, their traits become more common in the population.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences.

Adaptation

The process by which a species becomes fitted to its environment; it is the result of natural selection acting upon heritable variation.