In Year 1, Sloco purchased an equity security for $40,000 and determined that the security had no readily determinable fair value. At the end of Year 2, there were observable price changes in a similar security that indicated that the fair value of Sloco's investment had declined to $36,000. Because of recovery in market conditions in Year 3, there were observable price changes in the similar security, indicating that the value of Sloco's investment is $41,000. What amount, if any, would Sloco recognize as an impairment (loss) or gain in Year 2 and Year 3

5. understanding marginal and average tax rates consider the economy of citronia, where citizens consume only oranges. assume that oranges are priced at $1 each. the government has devised the following tax plans: plan a • consumption up to 1,000 oranges is taxed at 50%. • consumption higher than 1,000 oranges is taxed at 20%. plan b • consumption up to 2,000 oranges is taxed at 15%. • consumption higher than 2,000 oranges is taxed at 60%. use the plan a and plan b tax schemes to complete the following table by deriving the marginal and average tax rates under each tax plan at the consumption levels of 300 oranges, 1,200 oranges, and 3,000 oranges, respectively. consumption level plan a plan b (quantity of oranges) marginal tax rate average tax rate marginal tax rate average tax rate (percent) (percent) (percent) (percent) 300 1,200 3,000 complete the following table by indicating whether each plan is a progressive tax system, a proportional tax system, or a regressive tax system. progressive proportional regressive plan a plan b