If the Fair Value of a Debt Investment That Is

question 3

Multiple Choice

If the fair value of a debt investment that is classified as an available-for-sale investment declines for a reason that is viewed as "other than temporary" because the company has incurred a credit loss on the investment:

• A) The investment is written down to fair value, and only the noncredit-loss component of the impairment loss is recognized in net income.
• B) The investment is written down to fair value, and the entire impairment loss is recognized in net income.
• C) The investment is written down to fair value, and only the credit-loss component of the impairment loss is recognized in net income.
• D) The investment is written down to fair value, but none of the impairment loss is recognized in net income.

---

Definitions:

Phylum

A phylum is a rank of classification in biology that groups together organisms with a similar body plan or significant shared characteristics.

Phylum

A level of classification in the biological taxonomy that groups together organisms with a common body plan or significant shared characteristics.

Phylum

A classification level in the biological taxonomy that groups together related classes of organisms.

Phylum

A level of classification or taxonomic rank below Kingdom and above Class, used to group together organisms that share a common plan of basic structure.