A Company Paid $100,000 for Corporate Bonds and Classified Them

A company paid $100,000 for corporate bonds and classified them as AFS. These bonds are currently carried at $102,000. At year-end, their market value is $90,000, due to credit losses. Which statement is true concerning the end-of-year adjustment for this investment?

A) No adjustment is required.
B) OCI is reduced by $2,000.
C) An impairment loss of $12,000 is reported in income.
D) The investment account is reduced by $10,000.