How much is the realized gain or loss as a result

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Problem 1: On July 1,2013, WELL Inc. acquired 5,000 preference shares of JG Inc. at P10/share and paid transaction costs of P10,000. WELL purchased the investment with the intent of selling them in the near future to generate short-term gains or profits. On December 31,2013, the preference share of JG Inc. is traded at P12/share in the Philippine Stock Exchange. On December 31,2014, the preference share of JG Inc. is quoted at P8/share in the Philippine Stock Exchange. On January 1,2015, WELL sold 2,000 preference shres of JG Inc. for 9/share less disposal cost of P3,000. How much is the realized gain or loss as a result of the disposal of Investment in JG Inc. on January 1,2015?

a. P2,000 gain
b. P6,000 loss
c. P9,000 loss
d. P1,000 loss

Reference no: EM132776779

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