Herbst Enterprises purchased equity securities in 2019 and classified them as FV-OCI. They reported an unrealized gain in 2019 and an additional unrealized gain in 2020. They decide to sell the securities in 2021 for $28,000 more than the fair value recorded in 2020. Based on this, Herbst needs to transfer

transfer the previously unrealized gains on the securities they sold directly into retained earnings.

restate the 2019 and 2020 financial reports to change the unrealized gains to realized gains.

report the realized gain as dividend revenue.

report the realized gain under other comprehensive income.