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Problem 1: On 1 July 2019, Ting Ltd acquired 30% of the issued shares of Tang Ltd for $100,000. On 1 January 2020, Ting Ltd sold inventories to Tang Ltd. Half of these inventories remain in Tang Ltd by 30 June 2020 and they were all sold to external parties by 30 June 2021. During the year ended 30 June 2021, in relation to the unrealised profit of the inventory, the investment in associate account is:
Option 1: increased by the full amount of the realised profitOption 2: not adjusted as the profit has not been realisedOption 3: increased by the investor's share of the realised profitOption 4: decreased by the investor's share of the realised profit
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