On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $141 million and classified the securities as trading securities. On December 31, 2021, these bonds were valued at $166 million. Three months later, on April 3, 2022, Phillips Corporation sold these bonds for $152 million. As part of the multistep approach to record the 2022 transaction, Jefferson Corporation should next take the second step of recording a sales transaction where it:.
A. Credits a fair value adjustment of $18 million.
B. Debits a fair value adjustment of $18 million.
C. Debits a fair value adjustment of $8 million.
D. Credits a fair value adjustment of $8 million.

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500