Nichols Corporation purchased $140,000 of Holly Inc. 6.5% bonds at par with the intent and ability to hold the bonds until they matured in 2022, so Nichols classifies its investment as held to maturity. Unfortunately, a combination of problems at Holly and in the debt market caused the fair value of the Holly investment to decline to $115,000 during 2018. Nichols calculates that, of the $25,000 decrease in fair value, $7,000 of it relates to credit losses and $18,000 relates to noncredit losses Assume that Nichols concludes that the Holly bonds are other-than- temporarily impaired because Nichols is planning to sell the bonds in the near future. Before-tax net income for 2018 will be reduced by: Multiple Choice $0. $25,000 Prev 20 of 23E Next >