On January 1st 2020, X Company purchased 40,000 or Y Company's 50,000 outstanding voting shares for $400,000. The entire purchase discrepancy was allocated to land owned by Y. At December 31st.2021, the balance of the Investment Account in Y under the equity method was $432,000. On January 1st, 2022, X sold 10,000 shares of Y on the open market for $120,000. The fair value of Y's land had increased for the 2 years prior to 2022. What is the gain or loss on the sale of the 10,000 shares to be reported on X's consolidated financial statements, and how should this gain or loss be reported? $12000 gain reported in net income ii. $12,000 gain reported as a direct credit to shareholders' equity $20,000 gain reported in net income $20,000 gain reported as a direct credit to shareholders' equity. iii.