Cattle Co. purchased cattle for P200, 000 on July 1, 2021. The cost of transporting the same to the farm was P2,000 and the company would have to incur cost similar transportation cost if it was to sell the cattle to auction. There is also an auctioneers fee of 2% based on sales price. What amount should the biological assets be initially recognized?

Cattle Co. purchased cattle for P200, 000 on July 1, 2021. The cost of transporting the same to the farm was P2,000 and the company would have to incur cost similar transportation cost if it was to sell the cattle to auction. There is also an auctioneers fee of 2% based on sales price. What amount should the biological assets be initially recognized?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 44P

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