An entity rears cattle for the fresh meat industry. It slaughters its cattle and butchers the meat into cuts before selling them to its meat wholesaler customers. The entitys statement of financial position on December 31, 2021 reported cattle (40 animals) at their fair value less costs to sell of P200,000. On December 31, 2022, when the fair value less costs to sell of the entitys herd is P300,000, the entity slaughtered 16 cattle. The quoted price of a carcass is P14,000 and the costs to sell are estimated at P40 per carcass. On December 31, 2022, the entity incurs P7,000 direct costs in processing the carcasses into meat cuts ready for sale to its customers. 1. Determine the carrying value of meat inventory presented on the statement of financial position as of December 31, 2022. 2. Determine the gain on valuation of biological assets and agricultural produce to be reported on the December 31, 2022 statement of comprehensive income.