When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to: a. Always compare them over a period equal to the life of the longer-lived alternative b. Always compare them over a time period of equal service c. Always compare them over a period equal to the life of the shorter-lived alternative d. Find the present worth over one life cycle of each alternative e.

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?