4. During 20X1 a company purchased 200 shares of Royal Bank at $70 per share and 1,000 shares of Manulife at $18 per The company holds the Royal Bank shares for trading purposes, using the FV-Ni model and it uses the FV-OCI model for the Manulife shares. By the end of 20X1, the Royal Bank shares are trading at $80 each and the Manulife shares are trading at $15 each. The company uses separate accounts for each investment and for all forms of investment income. Based on the above, the company will record in its financial statements for the year ended December 31, 20X1. -- a) An unrealized gain of $2,000 in the income statement and an unrealized loss of $3,000 in other comprehensive income b) An unrealized gain of $2,000 in other comprehensive income and an unrealized loss of $3,000 in the income statement c) An unrealized loss of $1,000 in other comprehensive income d) An unrealized loss of $1,000 in the income statement e) None of the above 5. On January 2, 2019, Hull Corp. purchased 200 of the 1,000 outstanding common shares of Gatineau Ltd. for $120,000 During 2019, Gatineau declared total cash dividends of $20,000 and reported net income for the year of $80,000. If Hull uses the cost model to account for its investment in Gatineau, Hull's Investment in Gatineau Ltd. account at December 31, 2019 should be a) $136,000 b) $132,000 c) $120,000 d) $116,000 6. On its December 31, 2019 balance sheet, Holly Corp. reported a short-term investment in equity securities, under the fair value through net income model, at 5660,000. At December 31, 2020, the fair value of the securities was $700,000. What should Holly report on its 2018 income statement as a result of the increase in fair value of the investments during 2020? a) SO b) loss on investments of $40,000. c) unrealized gain of $40,000. d) investment income of $40,000