(a) Explain the term "holding gain" in relation to inventories.

(b) On the first day of an accounting period, a company acquired inventories at a cost of £60,000. Two-thirds of these inventories were sold for £55,000 on the final day of the accounting period. The specific price index applicable to these inventories rose by 8% during the period.

Calculate the gross profit for the period (in nominal financial terms) and state the amount of this profit which comprises a holding gain.