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Question: A group of twenty 2-year old cattle was held at January 1, 2012. Five 2-year old cattle were purchased on January 2, 2012 for Php 13,000 each and five calves were born on the same date.
No cows or calves were disposed of during the period. Per unit fair values less estimated point of sale costs were as follows:
January 1, 2012
2-year old cattle
Php 12,000
New born cattle 4,000
December 31, 2012
3-year old cattle 15,000
2-year old cattle 13,000
1-year old cattle 7,000
Newborn cattle 5,000
How much shall be taken to profit or loss as a gain arising from change in fair value due to physical change?
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