Alex and bailey opened a dance studio together as general partners. they each invested $10,000 of their personal savings. after one year in business, they decided to close the doors. their partnership agreement said they would divide profits and losses 50/50. they have more debt than assets. alex and bailey will each

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?