Robin co. has a marketable equity securities portfolio classified as available-for-sale. none of the holdings enables robin to exercise significant influence over an investee. the aggregate cost exceeds its aggregate market value. the decline is considered temporary and should be reported as a (an): a. unrealized loss in the income statement. b. realized loss in the income statement. c. valuation allowance in the noncurrent liability section of the balance sheet. d. valuation allowance in the asset section of the balance sheet.

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?