Tomas started raising swine for sale by purchasing 5 gilts and a boar at a total purchase price of P50,000 on January 2016. As of December 31, 2016, Tomas' herd grew to 15 gilts, 2 boars and 20 piglets. The total herd has a fair value of P196,000 when sold as is. During the year, Tomas earned P180,000 from selling piglets. How much should Tomas report as farming income in 2016?
A. P326,000
B. P180,000
C. P 146,000
D. P130,000
Answer: B. P180,000