What amount of gain or loss should fortune company recognize

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Question - Fortune Company purchased dairy cattle at for P400,000 on July 1, 2022. Cost of transporting the cattle back to the company's farm was P4,000 and the seller would have to incur cost similar transportation cost if it was to sell the cattle in the auction/active market, in addition an auctioneer's fee of 2% of sales price. On December 31, 2022, after taking into account and location, the fair value of the biological assets had increased to P600,000 (that is, the market price including the auctioneer's fee of P20,000 and transportation cost of P4,000). What amount of gain or loss should Fortune Company recognize as a result of change in fair value on December 31, 2022 assuming the Dairy cattle were purchased at the auction area/active market on July 1 2022?

Reference no: EM133173784

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