DAFFODIL Company's standing sugar cane fair value as of January 1, 2020 was ₱2,700,000 and as of December 31, 2020 was ₱2,800,000. The biological asset has a life span of less than a year and has no dual purpose. The selling price of the agricultural produce harvested during the period was ₱2,100,000, on the respective dates of harvest. The estimated cost to sell is ₱100,000. What net amount of gain should DAFFODIL report in its December 31, 2020 profit or loss related to the biological asset and agricultural produce? ₱ 100,000 ₱ 2,200,000 ₱ 2,100,000 ₱ 2,000,000

DAFFODIL Company's standing sugar cane fair value as of January 1, 2020 was ₱2,700,000 and as of December 31, 2020 was ₱2,800,000. The biological asset has a life span of less than a year and has no dual purpose. The selling price of the agricultural produce harvested during the period was ₱2,100,000, on the respective dates of harvest. The estimated cost to sell is ₱100,000. What net amount of gain should DAFFODIL report in its December 31, 2020 profit or loss related to the biological asset and agricultural produce? ₱ 100,000 ₱ 2,200,000 ₱ 2,100,000 ₱ 2,000,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

See similar textbooks

Similar questions

HYACINTH Company's standing sugar cane fair value as of January 1, 2020 was ₱2,700,000 and as of December 31, 2020 was ₱2,800,000. The biological asset has a life span of less than a year and has no dual purpose. The selling price of the agricultural produce harvested during the period was ₱2,100,000, on the respective dates of harvest. The estimated cost to sell is ₱100,000. What net amount of gain should HYACINTH report in its December 31, 2020 profit or loss related to the biological asset and agricultural produce? a. ₱ 2,100,000 b. ₱ 2,200,000 c. ₱ 100,000 d. ₱ 2,000,000
HYACINTH Company's standing sugar cane fair value as of January 1, 2020 was ₱2,700,000 and as of December 31, 2020 was ₱2,800,000. The biological asset has a life span of less than a year and has no dual purpose. The selling price of the agricultural produce harvested during the period was ₱2,100,000, on the respective dates of harvest. The estimated cost to sell is ₱100,000. What net amount of gain should HYACINTH report in its December 31, 2020 profit or loss related to the biological asset and agricultural produce? * ₱ 2,100,000 ₱ 2,000,000 ₱ 2,200,000 ₱ 100,000
PEARS Company's standing sugar cane fair value as of January 1, 2023 was P2,700,000 and as of December 31, 2023 was P2,800,000. The biological asset has a life span of less than a year and has no dual purpose. The selling price of the agricultural produce harvested during the period was P2,100,000, on the respective dates of harvest. The estimated cost to sell is P100,000. What net amount of gain should PEARS report in its December 31, 2020 profit or loss related to the biological asset and agricultural produce?A. P 100.000B. P 2,000,000C. P 2,100,000D. P 2,200,000
On December 30, 2021, the Apple Kingdom Farm harvested apples with fair value of P 200,000 and an estimated cost to sell of P5,000. The apples were not recorded as biological assets while it grew on trees. At year-end, the fair value declined slightly to P190,000 while its net realizable value is P210,000. On January 1, 2020, all of the apples had been sold for P200,000, the company paid selling cost of P 1,000. What is the journal entry to record the harvested apples on December 30, 2021?
On January 1, 2022, Plantitos Company purchased a vineyard costing P 12,000,000 which is determined to produce fruit for a period of 5 years. During the year, Plantitos harvested grapes with a fair value less cost to dispose of P 4,000,000. By the end of 2021, it sold the grapes for P 7,000,000. What amount should be reported as gross profit from sales? a. P 3,000,000 b. P 3 500,000 c. P 7,000,000 d. P4,000,000
On April 20, 2020, Wilhamette Incorporated purchased the right to remove timber from a 20,000-acre tract of land in Oregon over the next three years, and the company estimates no residual value. The timber is to be sold as lumber for new home construction. The cost of the timber rights was $600,000, with estimated salable timber feet of 800,000. During 2020 and 2021, Wilhamette harvested and sold 650,000 feet of timber. What is the book value of the timber rights at the end of 2021, assuming the company uses the units-of-production method?
DEE Inc. purchased 600 milking cows on January 1, 2020 for P2,700,000. During 2020, the change in fair value due to physical and price changed amounted is P45,000 and the change in fair value due to harvest is (P5,000). Milk harvested but not yet sold had a net realizable value of P125,000. What is the correct entry to record the net gain from the change in fair value of biological asset. * A. Debit biological asset, credit gain from biological asset - P45,000 B. Debit biological asset, credit gain from biological asset - P165,000 C. Debit biological asset, credit gain from biological asset - P40,000 D. Debit inventory, credit gain from biological asset - P125,000
On December 30, 2021, the Green Pasteur Farms slaughtered cows with fair value of P 400,000. Estimated cost to sell of P 20,000 includes transportation cost of P 3,000 to bring the cows to slaughter house, and another transportation cost of P 2.000 to bring the carcasses to the market. At year-end, no meat had been sold but its fair value on this date is P 410,000 while its net realizable value is P 405.000. What amount should the agricultural produce be recorded on December 30, 2021? a. P 383,000 b. P 382,000 c. P400,000 d. P 385,000
Prophet Company signed a long-term purchase contract to buy timber from the U.S. Forest Service at $300 per thousand board feet. Under these terms, Prophet must cut and pay $6,000,000 for this timber during the next year. Currently, the market value is $250 per thousand board feet. At this rate, the market price is $5,000,000. Jerry Herman, the controller, wants to recognize the loss in value on the year-end financial statements, but the financial vice president, Billie Hands, argues that the loss is temporary and should be ignored. Herman notes that market value has remained near $250 for many months, and he sees no sign of significant change. Instructions (a) What are the ethical issues, if any? (b) Is any particular stakeholder harmed by the financial vice president's decision? (c) What should the controller do?
Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2016, Rhone-Metro leased equipment to Western Soya Co. for a four-year period ending December 31, 2020, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost $300,000 to manufacture and has an expected useful life of six years. Its normal sales price is $365,760. The expected residual value of $25,000 at December 31, 2020, is not guaranteed. Equal payments under the lease are $104,000 (including $4,000 executory costs) and are due on December 31 of each year. The first payment was made on December 31, 2016. Collectibility of the remaining lease payments is reasonably assured, and Rhone-Metro has no material cost uncertainties. Western Soya’s incremental borrowing rate is 12%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation. Required: 1. Show how Rhone-Metro calculated the $104,000…
In singapore pinku Ltd sold a machine in the year ended 30 September 2023 for $23,000. This machine was purchased for S$60,000 in the year ended 30 September 2021 and it was depreciated over 5 years though CA was claimed under S19(1) over 3 years. What is the balancing adjustment for the above sale? A. Balancing Charge of $3,000B. Balancing Charge of $13,000C. BalancingAllowanceof$3,000 D. Balancing Allowance of $13,000
G-Waste Limited, a leading waste management company, acquired a parcel of land on January 1, 2014 at a fair value of Ghc250,000. The land would be used as a dumpingsite for the estimated period of 4 years. At the end of the dumping period, the company is required to reclaim the land by recovering with gravel and grassing at an estimated cost of Ghc95,000. The prevailing discount rate for 1year Government of Ghana Treasury bill is 21%. Required: 1) Describe how G-Waste should account and disclose this transaction in its 2014 and 2015 Financial Statements.