At the beginning of current year, Gala Company purchased marketable equity securities to be held as “trading” for 5,000,000. The entity also paid commision,taxes and other transaction costs amounting to 200,000.
The securities had a market value of 5,500,000 at year end. No securities were sold during the year. The transaction costs that would be incurred on the disposal of the invesment are estimated at 100,000.
What amount of unrealized gain or loss on these securities should be reported in the income statement for the current year?.