16. ABC Co.'s biological asset has a fair value less costs to sell of P 100,000 and P120,000, respectively. The year-end adjusting entry will most likely include a. a credit to unrealized gain of P 20,000 to be recognized in profit or loss b. a credit to unrealized gain of P 20, 000 to be recognized in other comprehensive income c. a debit to unrealized gain of P 20,000 to be recognized in profit or loss d. none of these

16. ABC Co.'s biological asset has a fair value less costs to sell of P 100,000 and P120,000, respectively. The year-end adjusting entry will most likely include a. a credit to unrealized gain of P 20,000 to be recognized in profit or loss b. a credit to unrealized gain of P 20, 000 to be recognized in other comprehensive income c. a debit to unrealized gain of P 20,000 to be recognized in profit or loss d. none of these

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ABC Co.’s biological asset has a fair value less costs to sell of P 100,000 and P120,000, respectively. The year-end adjusting entry will most likely include a. a credit to unrealized gain of P 20,000 to be recognized in profit or loss b. a credit to unrealized gain of P 20, 000 to be recognized in other comprehensive income c. a debit to unrealized gain of P 20,000 to be recognized in profit or loss d. none of these
Entity A recognizes a gain of P100 from the change in FVLCS of its biological assets during the period. If the change in FVLCS due to price change is P70, the change in FVLCS due to physical change must be P40. True or False. Please explain.
HAPPY Corp. assets have a carrying amount of P100,000 before year end adjustments. The PFRSs require these assets to be measured at fair value at each reporting date. Location is a characteristic of the assets. Information at year end is as follows: Active Market #i Quoted Price P340,000, Transport Cost-P25,000, Cost to Sell -P35,000 and Active Market #2 Quoted Price - P387,000, Transport Cost -29,000. Cost to Sell- 18,000. A} If Active Market #1 is the principal market for Entity A's biological assets, how much is the fair value? B)If neither Active Market#1 nor Active Market #2 is the principal market, how much is the fair value?
HAPPY Corp. assets have a carrying amount of P100,000 before year end adjustments. The PFRSs require these assets to be measured at fair value at each reporting date. Location is a characteristic of the assets. Information at year end is as follows: Active Market #i Quoted Price P340,000, Transport Cost-P25,000, Cost to Sell -P35,000 and Active Market #2 Quoted Price - P387,000, Transport Cost -29,000. Cost to Sell- 18,000. A} If Active Market #1 is the principal market for Entity A's biological assets, how much is the fair value? B)If neither Active Market#1 nor Active Market #2 is the principal market, how much is the fair value? A. P315,000; P358,000 B. P280,000; P358,000 C. P315,000; P340,000 D. P280,000;P340,000
True or False _____ PAS 16 defines depreciation as "the decrease in the value of an asset." ______ According to PAS 16, items of PPE are initially measured at cost and subsequently measured using either the cost model or the fair value model. _______ an entity acquires an asset for P120k. The asset is estimated to have a useful life of 10 years and a residual value P20K. tHE STRAIGHT LINE DEPRECIATION RATE BASED ON DEPRECIABE AMOUNT IS 10% _______ An entity acquires an asset for P1M. A P200k residual value is estimated for the asset. Ar the end of the asset's useful life, the accumulated depreciation wil be equal to P1M. _______ A machine acquired on the 20th of Julyv(and ready for its intended use as at this date) would most likely be depreciated starting on the 1st of August. _______ A change in the depreciation method, useful life or residual value of a PPE is accounted for retrospectively.
10. XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Compute for a) Cost of Acquisition and b) goodwill or gain from acquisition (two answers)
10. XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Compute for a) Cost of Acquisition and b) goodwill or gain from acquisition
11. The following information pertains to Nonagon Company's biological assets at December 31, 2021: Price of assets in an active market , P 5,000,000 Estimated broker's and dealer's commissions, P 50,000 Transport and other costs expected to be incurred to bring the assets to the market, P 40,000 Selling price in a binding sale agreement, P 5,100,000 At what amount should the biological assets be presented on the statement of financial position?
The Company provided the following data: Value of biological asset at acquisition cost on 12/31/19, P 600,000 Fair valuation surplus on initial recognition at fair value on 12/31/19 P 700,000 Change in fair value to 12/31/20 due to growth and price fluctuation, P 100,000 Decrease in fair value due to harvest, P 90,000 What is the carrying amount of the biological asset on December 31, 2020? What is the gain from change in fair value of biological assets in 2020?
5. During the current year an entity sold a piece of equipment used in production. The equipment had been accounted for using the revaluation method and details of the accounts and sale are presented below: Sales price P100,000 Equipment carrying amount (net) 90,000 Revaluation surplus 20,000 Which of the following is correct regarding recording the sale? Group of answer choices The gain that should be recorded in other comprehensive income is P10,000 The gain that should be recorded in profit and loss is P10,000; the P20,000 revaluation surplus may be transferred to retained earnings. The gain that should be recorded in other comprehensive income is P30,000 The gain that should be recorded in profit and loss is P30,000
On its December 31, 2020, balance sheet, Post Co. reported its investment in financial asset @ fair value through other comprehensive income, which had cost P360,000, at fair value of P330,000. At December 31, 2021, the fair value of the securities was 350,000. What should Post report on its 2021 income statement as a result of the increase in fair value of the investments in 2021? Unrealized loss of P10,000 Unrealized gain of P20,000 Nil Realized gain of P20,000
TRUE OR FALSE?There is impairment loss if the carrying amount of the asset held for sale is P5,000,000 and the fair value less cost of disposal is P5,200,000.