The direct write-off method:.a. may be used only by businesses with five or fewer accounts receivable. b. is used by businesses whose receivables are a small part of their current assets. c. does not allow for reinstatement if the amount owed is received after being written off. d. may not be used by companies that accept MasterCard or VISA.

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?