Wang Corporation purchased $180,000 of Hales Inc. 7% bonds at par with the intent and ability to hold the bonds until they matured in 2022, so Wang classifies its investment as held to maturity. Unfortunately, a combination of problems at Hales and in the debt market caused the fair value of the Hales investment to decline to $143,000 during 2018. Wang views this decline as an other-than-temporary (OTT) impairment. Wang calculates that, of the $37,000 drop in fair value, $15,000 of it relates to credit losses and $22,000 relates to non-credit losses. If Wang accounts for the Hales bonds under IAS No. 39, before-tax net income for 2018 will be reduced by :

A.$22,000

B.$0

C.$37,000

D.$15,000