What amount of gain from sale should the company recognize

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Universal Company owns 10,000 ordinary shares of Nike Company, which has hundred thousand shares publicly traded. Universal Company purchased these 10,000 shares in 2014 for P120 per share. Universal Company designated the equity shares at fair value to other comprehensive income. On October 31, 2014, Universal Company received P20 per share from Nike Company as cash dividend. On December 30, 2014, Universal Company sold 6,000 shares of Nike Company for P126 per share which is equal to the prevailing market price of Nike Company and incurred P10,000 transaction cost. As a result of the disposal, Universal Company has decided to reclassify the equity investment from fair value to other comprehensive income to fair value to profit or loss.

What amount of gain from sale should the company recognize?

Reference no: EM133234051

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