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Problem 1: Gilbert Lacson realized his lifelong dream of becoming a vineyard owner when he was able to purchase the Negros Vineyard at an estate auction in August 2019 for P750,000. Gilbert retained the Negros name for his new business. The purchase was risky because the growing season was coming to an end, the grapes must be harvested in the next several weeks, and Gilbert has limited experience in carrying off a grape harvest. At the end of the first quarter of operations, Gilbert is feeling pretty good about his early results. The first harvest was a success: 300 bushels of grapes harvested with a value of P30,000 (based on current local commodity prices at the time of harvest). And, given the strong yield from area vineyards during this season, the net realizable value of Gilbert's vineyard increased by P15,000 at the end of the quarter. After storing the grapes for a short period of time, Gilbert was able to sell the entire harvest for P35,000. What is the total effect on income for the quarter related to the Negros biological asset and agricultural produce?
a. P45,000
b. P5,000
c. P50,000
d. P35,000
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