Accumulated other comprehensive income d the

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Unformatted text preview: own to fair value, and the entire impairment loss is recognized in . accumulated other comprehensive income. D. The investment is treated the same way it would be treated if the decline in fair value was viewed as temporary. 112.If the fair value of a held-to-maturity 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. 113.If the fair value of a trading security declines for a reason that is viewed as "other than temporary": A. The investment is not written down to fair value. B. The investment is written down to fair value, and an "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 treated the same way it would be treated if the decline in fair value was viewed as temporary. 114.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 income. C. Recorded as deferred asset. D. Treated as unrealized. 115.An OTT impairment for an equity investment is recognized in net income if fair value declines below the investment's cost and: A. The company has incurred noncredit losses. B. The company does not have the intent and ability to hold the investme...
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This document was uploaded on 07/05/2013.

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