Rollin Corporation purchases 100 shares of stock in Boyle Corp., and classifies the investment as equity securities. Rollin should report these securities at Question 13 options: 1) Lower of cost or market, with holding gains and losses included in earnings. 2) Lower of cost or market, with holding gains included in earnings only to the extent of previously recognized holding losses. 3) Fair value, with holding gains included in earnings only to the extent of previously recognized holding losses. 4) Fair value, with holding gains and losses included in earnings.