Consider the following statements in context of IAS 40 Investment property:

1. Investment property may be measured in terms of either the cost model or fair value model, where this choice is an accounting policy choice.

2. When measuring investment property using the cost model, we must always depreciate the asset and test it for impairments in terms of IAS 36 Impairment of assets.

3. The subsequent measurement models are selected on a property-by-property basis, i.e. some investment properties can be measured using the cost model despite others being measured using the fair value model.

4. When the fair value model is applied, all investment property must be measured at fair value, regardless of whether the fair value is reliably measurable on a continuing basis.

(Choose one correct option only)