38.A group of thirty 2-year old cattle was held at January 1, 2021. On this same date, additional five 2-year old cows were purchased at P12,500 each and five healthy calves were born. No cows or calves were sold during the year. Per unit fair values less costs to sell were as follows: January 1, 2021: 2-year old cattle-12,500 Newborn cattle-4,000 December 31, 2021: 3-year old cattle-15,000 2-year old cattle-13,000 1-year old cattle-7,000 Newborn cattle-4,500 The company records separately the increase in fair value less cost to sell due to physical change and due to price change. How much is reported as change in fair value less cost to sell due to physical change? a. 82,500 b. 90,000 c. 102,500

38.A group of thirty 2-year old cattle was held at January 1, 2021. On this same date, additional five 2-year old cows were purchased at P12,500 each and five healthy calves were born. No cows or calves were sold during the year. Per unit fair values less costs to sell were as follows: January 1, 2021: 2-year old cattle-12,500 Newborn cattle-4,000 December 31, 2021: 3-year old cattle-15,000 2-year old cattle-13,000 1-year old cattle-7,000 Newborn cattle-4,500 The company records separately the increase in fair value less cost to sell due to physical change and due to price change. How much is reported as change in fair value less cost to sell due to physical change? a. 82,500 b. 90,000 c. 102,500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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A group of thirty 2-year old cattle was held at January 1, 2021. On this same date, additional five 2-year old cows were purchased at P12,500 each and five healthy calves were born. No cows or calves were sold during the year. Per unit fair values less costs to sell were as follows:January 1, 2021: 2-year old cattle-12,500 Newborn cattle-4,000December 31, 2021: 3-year old cattle-15,000 2-year old cattle-13,000 1-year old cattle-7,000 Newborn cattle-4,500The company records separately the increase in fair value less cost to sell due to physical change and due to price change.How much is reported as change in fair value less cost to sell due to physical change?
As of January 1, Company A has a stock of 1,250 2 year-old cows and 850 1 year-old heifers. The Company purchased 300 1-year old heifers on July 1 for P154. In addition, 50 heifers were born on July 1. The following fair value less costs to sell are provided: 1 y/o heifers, January 1 300 2 y/o cows, January 1 224 New born heifers, July 1 146 1 y/o heifers, July 1 154 New born heifers, Dec 31 136 6-month old heifers, Dec 31 135 1 y/o heifers, Dec 31 150 1.5 y/o heifers, Dec 31 164 2 y/o heifers, Dec 31 173 2 y/o cows, Dec 31 219 3 y/o cows, Dec 31 233 Determine net loss in fair value of the biological assets during the year.
On December 30, 2021, the Tagaytay Farms slaughtered cows with fair value less cost to sell of P 200,000. The meat, on the other hand, had a fair value less cost to sell of P 205,000. At year-end, the fair value declined slightly to P190,000 and no meat had been sold at year-end. The net realizable value of the meat at year-end is P205,000. On January 1, 2022, all of the meat had been sold for P250,000, the company paid selling cost of P2,000. Prepare the journal entries on the following dates: 1. At December 30, 2021 2. January 1, 2021: A. Sales of meat B. Cost of sales of meat
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A public limited company, Bandong Dairy Products, produces milk on its farms. As of January 1, 2023, the firm has stock of 1,050 cows (average age, 2 years old) and 150 heifers (average age, 1 year old). The firm purchased 375 heifers, average age 1 year, on July 1, 2023. No animals were born or sold during the year. The unit values less estimated POS costs were1-year old animal at December 31, 2023 - ₱3,2002-year old animal at December 31, 2023 - ₱4,5001.5-year old animal at December 31, 2023 - ₱3,6003-year old animal at December 31, 2023 - ₱5,0001-year old animal at January 1, 2023 and July 1, 2023 - ₱3,0002-year old animal at January 1, 2023 - ₱4,000 What is the carrying value of the biological asset to be reported as of December 31 in the statement of financial position? [A] 5,775,000 [B] 7,275,000 [C] 7,612,500 [D] 6,555,000
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A public limited company, Bandong Dairy Products, produces milk on its farms. As of January 1, 2023, the firm has stock of 1,050 cows (average age, 2 years old) and 150 heifers (average age, 1 year old). The firm purchased 375 heifers, average age 1 year, on July 1, 2023. No animals were born or sold during the year. The unit values less estimated POS costs were1-year old animal at December 31, 2023 - ₱3,2002-year old animal at December 31, 2023 - ₱4,5001.5-year old animal at December 31, 2023 - ₱3,6003-year old animal at December 31, 2023 - ₱5,0001-year old animal at January 1, 2023 and July 1, 2023 - ₱3,0002-year old animal at January 1, 2023 - ₱4,000 What is the increase in value of biological asset in 2023 due to physical change? [A] 870,000 [B] 720,000 [C]590,000 [D] 780,000
Frenz Bhd has provided the following data related to its livestock management Date Details RM 2021 1 Jan 20 calves, 2 years old 1 July Purchase six month old calves-5 calves 1 July 4 claves born Fair value less Cost to sell per animal 2021 1 Jan 2 year old 500 1 July 6 month old 200 31 Dec 3 year old 800 31 Dec 2 year old 550 31 Dec 1 year old 400 31 Dec 6 month old 300 2022 2 July Newborn 100 31 Dec 4 year old 1000 31 Dec 3 year old 950 31 Dec 2 year old 650 31 Dec 1year old 420 31 Dec 6 month old 220 31 Dec Newborn 140 Required: Determine the carrying amount and revenue for year end 2021 and 2022
Hoppy Bunny Farms (HBF) grows carrots and planted an acre of carrot seeds in July 2020. At the time of planting, HBF expensed the costs of planting, including $14,000 for seeds, $8,000 in labour, and $7,500 in soil amendments. On July 31, 2020, HBF’s year end, the company estimates that the immature carrots have a fair value of $40,000. It would cost HBF $3,000 to sell these carrots. HBF expects to incur a further $10,000 in costs in August prior to harvesting the carrots, which will be sold for approximately $120,000 less $2,000 in selling costs. HBF reports under the IFRS financial reporting framework. What amount will show in HBF’s statement of financial position as at July 31, 2020, related to the carrots? Question 23 options: a) None, all costs are expensed. b) $37,000 c) $29,500 d) $118,000
Frenz Bhd has provided the following data related to its livestock management Date Details RM 2021 1 Jan 20 calves, 2 years old 1 July Purchase six month old calves-5 calves 1 July 4 claves born Fair value (FV) less Cost to sell (CTS) per animal 2021 1 Jan 2 year old 500 1 July 6 month old 200 31 Dec 3 year old 800 31 Dec 2 year old 550 31 Dec 1 year old 400 31 Dec 6 month old 300 2022 2 July Newborn 100 31 Dec 4 year old 1000 31 Dec 3 year old 950 31 Dec 2 year old 650 31 Dec 1year old 420 31 Dec 6 month old 220 31 Dec Newborn 140 Required: Determine the carrying amount and revenue for year end 2021 and 2022
Plaintiff, a seller of milk, had for ten years bid on contracts to supply milk to defendant school district and had supplied milk to other school districts in the area. On June 15, plaintiff contracted to supply defendant’s requirements of milk for the next school year at a price of $0.0759 per half pint. The price of raw milk delivered from the farm had been for years controlled by the U.S. Department of Agriculture. On June 15, the department’s administrator for the New York-New Jersey area had mandated a price for raw milk of $8.03 per hundredweight. By December, the mandated price had been raised to $9.31 per hundredweight, an increase of nearly 20 percent. If required to complete deliveries at the contract price, plaintiff would lose $7,350.55 on its contract with defendant and would face similar losses on contracts with two other school districts. Is the plaintiff correct in its assertion (a) that its performance had become impracticable through unforeseen events and (b) that it…
Berry Farm produces organic tomatoes and strawberries. In June 2024, it transported 125 boxes of strawberries with a price of $24 per box to the Bay Farmers’ Market. Berry Farm paid an upfront fee of $200 to present its products at the market for one week, and the market earns a 20% profit margin on each item sold, but Berry Farm is responsible for any items that remain unsold at the end of the week. Required: The market was able to sell 80 boxes of strawberries to customers. How much revenue should Berry Farm recognize with respect to this transaction?