A public limited company, Cromwell Dairy Products, produces milk on its farms. As of January 1,

2014 Cromwell has a stock of a 1,050 cows (average age, 2 years old) and 150 heifers (average

age, 1 year old). Cromwell purchased 375 heifers, average age 1 year old, on July 1, 2014. No

animals were born during the year. The unit values less estimated cost to sell were

1-year old animal at December 31, 2014

P3,200

2- year old animal at December 31, 2014

4,500

1.5- year old animal at December 31, 2014

3,600

3- year old animal at December 31, 2014

5,000

1-year old animal at Jan. 1, 2014 and July 1, 2014

3,000

2-year old animal at January 1, 2014

4,000

The increase in value of biological assets in the current period due to price changes is

A.

P1,500,000

B.

P460,000

C.

P630,000

D.

P555,000