Sun plc owns a hotel building that is leased to Happy Holidays. The building cost 1 200 000. Sun pic provides significant ancillary services to Happy Holidays for a fee of 120 000 per annum. 1. In the financial statements of Sun plc, the building may have to be classified as owner-occupied, rather than an investment property. 2. In the financial statements of Sun plc, the building may have to be classified as investment property, rather than as owner-occupied. 3. The fees paid by Happy Holidays are recognised as a fair value decrease in their accounting records. 4. The fees received by Sun plc are recognised as a fair value increase in their accounting records. Select one: a. 1 only is correct b. 2 only is correct 0 c. 1 and 3 are correct O d. 2 and 3 are correct e. 1 and 4 are correct