8. Assume a company has an "unrealized gain on an available-for-sale security" of $300,000 in 2022. How does this gain affect the company's net income and comprehensive income for 2022? Assume the company has an OCI section on its income statement. ARCA Effect on net income A. Increase B. Increase C. No effect D. No effect Effect on comprehensive income Increase No effect Increase No effect 9. If a company purchased a debt security at a discount, all else being equal, what should we observe with respect to the debt security's amortized cost as time goes by and the discount is amortized? A. The amortized cost should increase over time B. The amortized cost should stay the same C. The amortized cost should decrease over time 10. If a company purchased a debt security at a premium, all else being equal, what should we observe with respect to the debt security's amortized cost as time goes by and the premium is amortized? A. The amortized cost should increase over time B. The amortized cost should stay the same C. The amortized cost should decrease over time 11. When should the equity method of accounting be used? A. When a company has purchased between 50% and 75% of the stock of another company. B. When a company has purchased between 20% and 50% of the bonds of another company. C. When a company has purchased between 20% and 50% of the stock of another company. D. When a company has purchased more than 20% of the stock of another company. E. When a company has purchased more than 20% of the bonds of another company. 12. When determining the fair value of a marketable security, which input level is considered the most verifiable? A. Level 1 inputs B. Level 2 inputs C. Level 3 inputs