Question

When an impairment of an 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:-Recorded as a deferred credit-Included in net income-Recorded as deferred asset-Treated as unrealized

Answer 1

Answer: The correct answer is "Included in net income".

Explanation: When an impairment of an 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 included in net income.