May I ask for a solution/explanation to the question as well. Thank you!

Salve Company is engaged in raising dairy livestock. The entity provided the following information during the current year. Carrying amount on Jan 1 - P5,000,000; Increase due to purchases - P2,000,000; Gain arising from change in fair value less cost of disposal attributable to price change - P400,000; Gain arising from change in fair value less cost of disposal attributable to physical change is P600,000; Decrease due to sales is P850,000 and Decrease due to due to harvest - P200,000. What is the carrying amount of the biological asset on December 31?