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Question - Kite Company's financial position, shown below did not change during 2019. The general price index was 125 on January 5 and 140 on December 31, 2019. The balance sheet on January 1 and December 31, 2019 are:
Cash P250,000
Accounts receivable 500,000
Trading securities 400,000
Inventory 2,500,000
Land 1,350,000
P5,000,000
Accounts payable P1,500,000
Mortgage payable 500,000
Common stock 2,500,000
Retained earnings 500,000
Under a hyperinflationary economy, What is the purchasing power gain for year 2019?
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