Question: Clara Corp. does not elect to use the fair value option to report financial assets. For marketable debt securities included in Clara's held-to-maturity portfolio, which

Clara Corp. does not elect to use the fair value option to report financial assets. For marketable debt securities included in Clara's held-to-maturity portfolio, which of the following amounts should be included in the period's net income?

  1. Credit losses during the period
  2. Gains on securities sold during the period
  3. Write-off of HTM debt security to the credit allowance

Answer options:

  1. III only
  2. II only
  3. I and II
  4. I, II, and III

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