1. In the current year, a company has a gain of $50,000. The companys accountant is deciding whether to report this gain as part of nonoperating income in the income statement or as part of other comprehensive income. Which of the following is true?

1. Total shareholders equity will be greater if the gain is reported as part of other comprehensive income.
2. Net income will be same under either choice.
3. Retained earnings will be greater if the gain is reported as part of net income.
4. Total assets will be greater if the gain is reported as part of other comprehensive income.