lori works for big corporation. the existing contract between lori and big corporation can be terminated at will by either party. richard, the owner of a small store, offers to pay lori much more money if she will leave big corporation and work for his store. when lori starts to work for richard, big corporation correctly claims richard is liable for tortious interference with a contract.

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?