Reference no: EM132586665

During 2017, ABC Company purchased marketable equity securities as a short-term investment and classified them as held for trading securities. The cost and fair value at December 31, 2017, were as follows:

                    Security Cost         Fair Value
X 200 shares   8,400                 10,200
Y 2,000 shares 51,000                45,900
Z 4,000 shares   94,500            88,500

Question 1: ABC sold 1,000 shares of Company Y stock on March 16, 2018, for P25 per share, incurring P1, 200 in brokerage commission and taxes. On the sale, ABC should report a realized loss of

Option 1: Answer not given

Option 2: P 1,700

Option 3: P 850

Option 4: P 0

Option 5: P 500