Nichols Corporation purchased $240,000 of Holly Inc. 6% 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 $203,000 during 2018. Nichols calculates that, of the $37,000 decrease in fair value, $9,000 of it relates to credit losses and $28,000 relates to noncredit losses Assume that Nichols concludes that the Holly bonds are other-than-temporarily impaired because Nichols believes it is more likely than not that it will have to sell the Holly bonds before the bonds have a chance to recover their fair value. Before-tax net income for 2018 will be reduced by: Multiple Choice $0 $9,000 $28,000 $37,000