An AFS debt security's market value is less than its original cost. The loss is reported in income when:

Select one:

A. Current market value is below carrying value and the decline is due to increases in market interest rates.

B. Current market value is at least 50% below cost.

C. Current market value is below cost, and it is more likely than not that the investor will sell it before the loss is recovered.

D. Current market value is below carrying value.