D the company has incurred credit losses 116if the

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Unformatted text preview: nt until fair value recovers. C. The company lacks intent to hold the investment until fair value recovers. D. The company has incurred credit losses. 116.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 it is viewed as "more likely than not" that the investor will be required to sell the investment prior to recovering the amortized cost of the investment less any credit losses arising in the current year: A. The investment is not written down to fair value. B. The investment is written down to fair value, and the impairment loss is recognized in net income. C.The investment is written down to fair value, and the impairment loss is recognized in accumulated other comprehensive income. D. The investment is written down to fair value, and only the noncredit loss is included in net income. 117.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. 118.Which of the following is not a reason to consider a decline in the fair value of a debt investment to be "other than temporary"? A. The investor determines that a credit loss exists on the investment. B. The investor intends to sell the investment. CThe investor believes it is "more likely than not" that the in...
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