What amount of unrealized gain on securities should be

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Problem 1: On February 14, 2020, Peaches Company purchased marketable equity securities to be held as trading for ?5,000,000. The entity also paid commission, taxes and other transaction costs amounting to ?200,000. The securities had a market value of ?5,500,000 on December 31, 2020. No securities were sold during 2020. The transaction costs that would be incurred on the disposal of the investment are estimated at ?100,000. What amount of unrealized gain or loss on these securities should be reported in the 2020 income statement?

a. ? 500,000 unrealized loss

b. ? 400,000 unrealized gain

c. ? 500,000 unrealized gain

d. ? 400,000 unrealized loss

Reference no: EM132945548

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