Assume a contract for the sale of goods specifies that the seller will receive cash 20 months after delivery of a product. The seller is likely to do which of the following with respect to the time value of money over the life of the contract? A. Recognize interest expense.
B. Recognize additional cost of goods sold.
C. Ignore the time value of money.
D. Recognize interest revenue.

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?