On January 1, 2010, Alexis Company purchased marketable equity securities to be held as”trading” for P5, 000,000

Subject:FinancePrice:2.87 Bought7

Share With

On January 1, 2010, Alexis Company purchased marketable equity securities to be held as”trading” for P5, 000,000. The entity also paid commission, taxes and other transaction costs amounting to P200, 000. The securities had market value of P5, 500,000 on December 31, 2010 and the transaction costs that would be incurred an sale are estimated at P100, 000. No securities were sold during 2010.

What amount of unrealized gain or loss on these securities should be reported in the 2010 income statement?

500, 000 unrealized gain 500, 000 unrealized loss 300, 000 unrealized gain 400, 000 unrealized gain