Answer the following multiple$-$choice questions. Indicate your choice by selecting only one option from the four options given for each question answered. Round off all calculations to the nearest Rand or $2$nd decimal $\%,$ where applicable.

Use the following information to answer questions $20$:

Byde Ltd acquired $3,500$ shares in Nikola Ltd at a price of R$9\mathrm{.}00$ per share on $1$ July $2023.$ The shares are part of a long$-$term investment portfolio. Transaction costs related to the acquisition amounted to R$3,000.$ At year$-$end, $31$ December $2023,$ the market value of one Nikola Ltd share was R$17\mathrm{.}00.$

QUESTION $20$:

In accordance with IFRS $9,$ how should the shares be subsequently measured, and how should gains or losses be recognized?

$1.$

Fair value with gains and losses recognized in other comprehensive income $($OCI$)$;

$2.$

Cost with gains and losses recognized in profit or loss;

$3.$

Fair value with gains and losses recognized in profit or loss;

$4.$

Cost with gains and losses recognized in other comprehensive income $($OCI$).$