25. ABC Inc purchased shares of DEF Inc as follows: June 30th, 2023 4,000 shares @ $3 per share $12,000 June 30th, 2024 3,000 shares @ $4 per share $12,000 June 30th, 2025 3,000 shares @ $6 per share $18,000 The shares are considered to be passive investments. ABC Inc. has a December 31st, year-end. The market value of the DEF shares at each year-end was as follows: December 31st, 2023 $3.50 per share December 31st, 2024 $5.00 per share December 31st, 2025 $5.50 per share On July 1st, 2025, ABC sold half its shares in DEF Inc. for $6.50 per share.

a. Assuming that the shares are designated an FVTPL investment, the effect on ABC's 2023 income as a result of owning the DEF shares would be: Nil A $2,000 unrealized holding loss. A $2,000 unrealized holding gain. A $4,000 unrealized holding gain.

b. Assuming that the shares are designated an FVTOCI investment, the effect on ABC's 2023 financial statements as a result of owning the DEF shares would be: Nil A $2,000 unrealized holding loss. A $2,000 unrealized holding gain. A $2,000 credit to OCI.

c. Assuming that the shares are designated an FVTPL investment, the effect on ABC's 2024 income as a result of owning the DEF shares would be: Nil A $2,000 unrealized holding loss. A $7,000 unrealized holding gain. A $9,000 unrealized holding gain.

d. Assuming that the shares are designated an FVTOCI investment, the effect on ABC's 2024 financial statements as a result of owning the DEF shares would be: Nil A $7,000 unrealized holding loss. A $9,000 unrealized holding gain. A $9,000 credit to OCI.

e. The total gain or loss realized on the sale of the shares was: Nil A $16,000 realized gain. An $8,000 realized loss. An $8,000 realized gain.