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Woolf Trust Ltd is a Colchester-based Property Trust, managing a chain of commercial and residential properties in Colchester, Ipswich and Belfast. The Trust is considering selling off the residential property portfolios in Belfast due to the lingering Brexit uncertainty. The property portfolios have a book value of 5.4m. Connor Estate Ltd based in Belfast is offering 7.5m, the same price it recently paid for a similar property in the neighbourhood sold by a company in distress and liquidation. However, an independent valuer estimated the value based on two scenarios: (i) current market value for similar property portfolios estimated at 8.5m, (ii) the property might realise 10.5m in 2 years from now because of some positive news around the property market in Northern Ireland. REQUIRED: (i) Using your knowledge of IFRS 13: Fair Value Measurement, select the appropriate option for fair value out of the three options (i.e., offer by Connor Estate Ltd and the independent valuer), clearly stating the assumptions you have used to SELECT the appropriate option and REJECT the other two options. (7 marks) (ii) Based on your answer in (i) above, determine the fair value of the property, the measurement level (Level 1, 2, or 3) and the unrealised gain/(loss). (3 marks) (b) Plymouth Ltd is a private investment company registered in the UK with a financial year ending 30 June annually. It deals with the shares of listed blue-chip companies. The table below shows information in relation to part of the shares it acquired during the financial year. [CONTINUED] BE130-6-FY/6 Transaction date Shares in Gold Plc Shares in Silver Plc 15 July 2021 4,000 shares @ 15 each 6,000 shares @ 2 each 18 September 2021 1,500 shares @ 21 each - 23 January 2022 3,000 shares @ 35 each 4,000 shares @ 8 each 30 June 2022 2,500 shares @ 30 each - The company sold 1,800 shares of Gold Plc and 2,500 shares of Silver Plc on 30 August 2021. Shares at Silver Plc traded at 5/share on 30 June 2022. REQUIRED: (i) Calculate the fair value and unrealised gain/(loss) of the shares in Gold Plc at the financial year end. State which measurement level (Level 1, 2 or 3) you adopted and the assumptions you made to calculate the fair value. (7 marks) (ii) Calculate the fair value and unrealised gain/(loss) of the shares in Silver Plc at the financial year end. State which measurement level (Level 1, 2 or 3) you adopted and the assumptions you made to calculate the fair value. (5 marks) (iii) Justify why the use of fair value measurements by Plymouth Ltd is more value relevant than historical cost.