What amount should be prepared as gain of sale

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Question - ABC Company purchased 40,000 ordinary shares on October 1 for P6,600,000 to be held for trading. On November 30, the investee distributed a 10% stock dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000.

What amount should be prepared as gain of sale of investment for the current year?

a. P340,000

b. P400,000

c. P500,000

d. P600,000

e. Answer not given

Reference no: EM132567806

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