Complete the example for calculating realized returns with short-selling. Use both portfolio method and accounting method to verify that they produce the same results. Be sure to break down interest earned from various sources.

Suppose you have $100,000 and ABC is trading at $20/share. One-year later, ABC pays $2 in dividends and is worth $22/share. Assume deposit rate of 5%.

1. a) Suppose you sell-short 5,000 shares of ABC, and deposit the rest.
2. b) Suppose you sell-short 2,500 shares of ABC, and deposit the rest.
3. c) How would the method be affected if the borrowing rate was higher at 6% but the deposit rate remains unchanged?