What amount should erill hf to show in the income statement

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Problem 1: In the balance sheet of Erils hf. on December 31, 2019, the company's investment in listed bonds was recorded, at a cost of 500,000, 475,000 at fair value. On December 31, 2020, the fair value of the bonds was 492,500. What amount should Erill hf. to show in the income statement for the year 2020 due to an increase in the fair value of the investment?

Option 1: Realized profit 17,500.
Option 2: 0.
Option 3: Unrealized profit 17,500.
Option 4: Unrealized loss 7,500.

Reference no: EM132824660

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