IFRS 5

Hi i have this doubt concerning FV less cost of diposal in IFRS 5

As at 30 September 20X3 Dune’s property in its statement of financial position was:

Property at cost (useful life 15 years) $45m
Accumulated depreciation $6m
On 1 April 20X4, Dune decided to sell the property. The property is being marketed by a property agent at a price of $42m, which was considered a reasonably achievable price at that date. The expected costs to sell have been agreed at $1m. Recent market transactions suggest that actual selling prices achieved for this type of property in the current market conditions are 10% less than the price at which they are marketed.

At 30 September 20X4 the property has not been sold.

At what amount should the property be reported in Dune’s statement of financial position as at 30 September 20X4?

$36.0m
$37.5m
$36.8m
$42.0m

1. In this question, had it been initial classification on 1/04/20X4, then the value of NCA HFS would have been 37.5Million since the fair value change was found out due to recent market transactions?

2. And due to changes in market transaction in the FV on reporting date, we have reclassified it to FV less cost disposal since that is lesser than CV? Am i correct? Honestly, i don’t understand why the intially estimated fair value (42m-1m) is not chosen as the fair value amount. Thereby, making 37.5 milion the correct answer since it is the lower amount.

Thank you for your help:)