Wang Corporation purchased $290,000 of Hales Inc. 9% bonds at par with the intent and ability to hold the bonds until they matured in 2020, 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 $247,000 during 2016. Wang views this decline as an other-than-temporary (OTT) impairment. Wang calculates that, of the $43,000 drop in fair value, $10,000 of it relates to credit losses and $33,000 relates to non-credit losses. If Wang accounts for the Hales bonds under IAS No. 39, before-tax net income for 2016 will be reduced by: