On January 10, Year 1, Box, Inc., purchased debt securities of Knox, Inc., and Scot, Inc. Box classified both securities as noncurrent and available-for-sale. At December 31, Year 1, the cost of each investment was greater than its fair value. The loss on the Knox investment was a credit loss. The loss on the Scot investment was an unrealized holding loss. How should each lost be reported in the year-end financial statements, and what is the maximum amount recognizable for each loss?

I.Excess of amortized cost over fair value.

II.Excess of amortized cost over the present value of cash flows.

III.Item of net income.

IV. Item of other comprehensive income (OCI).

Knox Scot

A. I and III II and IV

B. II and III. I and IV

C. I and IV I and III

D. II and IV II and III