1. Ridge Co owns $100,000 par value of 4% North Co. 5-year bonds. On December 31, 2020, the fair value of the bonds was $130,0000 and the fair value of the bonds was $130,000 and the fair value adjustment account had a debit balance of $10,000. What was the cost of the bonds?a. $90,000b. $100,000c. $110,000d. $120,0002. Ridge Co. owns 5% of the outstanding shares of North Co. During 2020, North Co. earns $100,000 in net income and pays cash dividends of $40,000. How much investment income and dividend revenue will Ridge report in 2020?a. $5,000 in investment income and $2,000 in dividend revenueb. $0 in investment income and $2,000 in dividend revenuec. $5,000 in investment income and $0 in dividend revenue.d. $100,000 in investment income and $40,000 in dividend revenueAnswer both questions about Ridge for my exam.