Wang Corporation purchased $220,000 of Hales Inc. 8% 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 $180,000 during 2018. Wang views this decline as an other-than-temporary (OTT) impairment. Wang calculates that, of the $40,000 drop in fair value, $14,000 of it relates to credit losses and $26,000 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: Multiple Choice $40,000. $0. $26,000. $14,000