On September 3, 2021, Liberty Bank purchased 14,000 shares of eBay stock for $77 per share and classified the investment as trading. On September 30, 2021, eBay stock was trading at $70 per share, and on October 31, 2021, eBay stock was trading at $76 per share.

1. The Investment in eBay will be shown on Liberty Banks September 30, 2021 Balance Sheets for:
   1. $1,078,000
   2. $1,064,000
   3. $1,029,000
   4. $980,000
2. The Unrealized Gain or Unrealized Loss on this trading investment will be shown on Liberty Banks September 2021 Income Statement for:
   1. $84,000 unrealized gain
   2. $98,000 unrealized loss
   3. $49,000 unrealized gain
   4. $14,000 unrealized loss
3. Which of the following is TRUE about investments categorized as trading securities?
   1. Changes in their market value are reflected in net income.
   2. They are purchased to be held to maturity.
   3. They are valued on the balance sheet at cost.
   4. They can consist of debt, but not equity, securities.