Homework answers / question archive / At the beginning of 2021, Gala company purchased equity securities to 5 points held for trading for P5,000,000

At the beginning of 2021, Gala company purchased equity securities to 5 points held for trading for P5,000,000

Accounting

Share With

At the beginning of 2021, Gala company purchased equity securities to 5 points held for trading for P5,000,000. The entity also paid commission, taxes and other transaction costs amounting to P200,000. The securities had a market value of P5,500,000 at year-end. No securities were sold during the year. In the year 2022, 60% of the investments were sold. Proceeds from the sale amounted to P3,450,000 which is net of transaction costs amounting to P125,000. On December 31, 2022, the fair value of the investment is 40% more than the carrying amount at the end of 2021. What total gain/loss on trading securities should be reported in the income statement for 2022? Answer should be presented as: LOSS 123456 or GAIN 123456