Reference no: EM132894090

On January 1, 20x1, the biological assets of SUAVE POLISHED Co. consist of ten 2 year old animals with fair value less cost to sell of ?40,000 each for a total of ?400,000.

Transactions during the year include the following:

• One animal aged 2.5 years was purchased on July 1, 20X1 for ?43,200.
• One animal was born on July 1, 20X1.
• No animals were sold or disposed of during the period.

Per-unit fair values less costs to sell are as follows:

Newborn animal at July 1, 20X1                          ?28,000
2.5 year old animal at July 1, 20X1                      43,200
Newborn animal at 31 December 20X1                    28,800
0.5 year old animal at 31 December 20X1                32,000
2 year old animal at 31 December 20X1                  42,000
2.5 year old animal at 31 December 20X1                 44,400
3 year old animal at 31 December 20X1                     48,000

Problem 1: How much is the total gain from the change in fair value less costs to sell during 20x1?