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Business, 30.10.2021 02:50 kitttimothy55

he 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 had a $60,000 fair value on December 31, Year 3. The changes in the fair value of the security are not due to credit losses. What is the net effect of the above items on Smoke’s net income for the year ended December 31, Year 3?

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he following pertains to Smoke, Inc.’s investment in debt securities: On December 31, Year 3, Smok...

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