On both December 31, 2009, and December 31, 2010, Kopp Co.’s only marketable equity security had the same market value, which was below cost. Kopp considered the decline in value to be temporary in 2009 but other than temporary in 2010. At the end of both years the security was classified as a noncurrent asset. Kopp considers the investment to be available-for-sale. Assume that Kopp does not elect the fair value option to account for its available-forsale securities. What should be the effects of the determination that the decline was other than temporary on Kopp’s 2010 net noncurrent assets and net income?

a. No effect on both net noncurrent assets and net income.

b. No effect on net noncurrent assets and decrease in net income.

c. Decrease in net noncurrent assets and no effect on net income.

d. Decrease in both net noncurrent assets and net income.