On January 1, 2018 Alexes Company purchased market marketable equity securities to be held as trading for 5 000 000. The entity also paid transaction cost amounting to P 200 000. The securities had a market value of 5 500 000 on December 31, 2018 and the transaction cost that would be incurred on sale is estimated at 100 000. No securities were sold in 2018. What amount of unrealized gain or loss on these securities should be reported in the 2018 income statement?
On January 1, 2018 Alexes Company purchased market marketable equity securities to be held as trading for 5 000 000. The entity also paid transaction cost amounting to P 200 000. The securities had a market value of 5 500 000 on December 31, 2018 and the transaction cost that would be incurred on sale is estimated at 100 000. No securities were sold in 2018. What amount of unrealized gain or loss on these securities should be reported in the 2018 income statement?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter13: Marketable Securities And Derivatives
Section: Chapter Questions
Problem 20E
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Question
On January 1, 2018 Alexes Company purchased market marketable equity
securities to be held as trading for 5 000 000. The entity also paid transaction
cost amounting to P 200 000. The securities had a market value of 5 500 000
on December 31, 2018 and the transaction cost that would be incurred on
sale is estimated at 100 000. No securities were sold in 2018.
What amount of unrealized gain or loss on these securities should be
reported in the 2018 income statement?
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