the loss on the knox investment was considered other than temporary and that on scot 605462

On January 10, 2006, Box, Inc. purchased marketable equity securities of Knox, Inc. and Scot, Inc., neither of which Box could significantly influence. Box classified both securities as available-for-sale. At December 31, 2006, the cost of each investment was greater than its fair market value. The loss on the Knox investment was considered other-than-temporary and that on Scot was considered temporary. How should Box report the effects of these investing activities in its 2006 income statement?

1. I. Excess of cost of Knox stock over its market value.
2. II. Excess of cost of Scot stock over its market value.
   1. a. An unrealized loss equal to I plus II.
   2. b. An unrealized loss equal to I only.
   3. c. A realized loss equal to I only.
   4. d. No income statement effect.