Origin Pte Ltd sells household appliances and owns a division that sells rice cookers. The company was approached by a potential buyer to buy over the division and wished to measure the fair value of the inventory for rice cookers for the purpose of the sale. The company has in its stock 900 rice cookers which are identical. Three markets currently exist for the rice cookers which Origin has transacted regularly. The current volume and prices in the three markets for the rice cookers are as follows: Historical Transport cost to the market Sales price per cooker ($) Transaction volume - Market costs per cooker ($) per cooker (S) cooker sold by Origin (unit) 6,000 Malaysia 40 4 Indonesia 38 2,500 1,500 4 Thailand 34 3 Required: Determine the fair value of the rice cookers under FRS 113 Fair Value Measurement. Explain how you arrive at that valuation and the factors taken into consideration. (a) (b) The potential buyer managed to obtain the market information and requested the company to reconsider the fair value of the inventory. Total volume of rice cookers (identical model) sold in the three markets were: Total volume of cookers sold in the market (unit) Market Malaysia 150,000 Indonesia 750,000 Thailand 100,000