On January 1, 2021, ABC Co. has one, 1-year old, animal with carrying amount of P1.000. On March 31, ABC Co. acquired another animal, aged 2.25 years old. for P2,000, the fair value less costs of the animal on this date, One animal was born on October 1, 2021. The fair value less costs to sell of the newborn animal on this date 15 P500. ABC Co. determined the following fair values less costs to sell on December 31, 2021: New born P600 .25 year old P800 1 year old 2 year old 2.25 year old P1,200 P2,400 P3,000 P3,500 3 years old quirement: compute for the following: a. Total gain (loss) from the change in FVLCS during the period . Change in FVLCS due to price change Change in FVLCS due to physical change

On January 1, 2021, ABC Co. has one, 1-year old, animal with carrying amount of P1.000. On March 31, ABC Co. acquired another animal, aged 2.25 years old. for P2,000, the fair value less costs of the animal on this date, One animal was born on October 1, 2021. The fair value less costs to sell of the newborn animal on this date 15 P500. ABC Co. determined the following fair values less costs to sell on December 31, 2021: New born P600 .25 year old P800 1 year old 2 year old 2.25 year old P1,200 P2,400 P3,000 P3,500 3 years old quirement: compute for the following: a. Total gain (loss) from the change in FVLCS during the period . Change in FVLCS due to price change Change in FVLCS due to physical change

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

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 10MC

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On January 1, 20x1 AAA Co. has three 1-year old animal with carrying amount of P 3,000. On March 31, AAA Co. acquired two animals aged 2.25 years old, for P 2,000 each, the fair value less costs on this date. Six animals were born on October 1, 20x1. The fair value less costs to sell of the newborn animal on this date is P500. AAA Co. determined the fair value less costs to sell on December 31, 20x1: New born P 600 .25 years old 800 1 year old 1,200 2 years old 2,400 2.25 years old 3,000 3 years old 3,500             Requirements: Total gain (loss) from the change in Fair Value less Costs to Sell (FVLCS) during the period. Change in FVLCS due to price change. Change in FVLCS due to physical change.
Rainbow Company has the following information pertaining to its biological assets for the year 2021.A herd of 100, 2-year old animals was held at January 2, 2021. Ten animals aged 2.5 years were purchased on July 1, 2021 for P5,400, and ten animals were born on July 1, 2021. No animals were sold or disposed of during the period. Per unit fair values less estimated cost to sell were as follows:·       2.0-year old animal at January 1, 2021- P5,000·       Newborn animal at July 1, 2021- P3,500·       2.5-year old animal at July 1, 2021- P5,400·       Newborn animal at December 31, 2021- P3,600·       0.5-year old animal at December 31, 2021- P4,000·       2.0-year old animal at December 31, 2021- P5,250·       2.5-year old animal at December 31, 2021- P5,550·       3.0-year old animal at December 31, 2021- P6,000What is the fair value of the biological assets as of December 31, 2021? A. 581,500 B. 554,000 C. 700,000 D. 735,000
Rainbow Company has the following information pertaining to its biological assets for the year 2021.A herd of 100, 2-year old animals was held at January 2, 2021. Ten animals aged 2.5 years were purchased on July 1, 2021 for P5,400, and ten animals were born on July 1, 2021. No animals were sold or disposed of during the period. Per unit fair values less estimated cost to sell were as follows:·       2.0-year old animal at January 1, 2021- P5,000·       Newborn animal at July 1, 2021- P3,500·       2.5-year old animal at July 1, 2021- P5,400·       Newborn animal at December 31, 2021- P3,600·       0.5-year old animal at December 31, 2021- P4,000·       2.0-year old animal at December 31, 2021- P5,250·       2.5-year old animal at December 31, 2021- P5,550·       3.0-year old animal at December 31, 2021- P6,000What is the fair value of the biological assets as of December 31, 2021?
On March 20, 2020, FineTouch Corporation purchased two machines at auction for a combined total cost of $214,000. The machines were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, FineTouch had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $107,100 on machine X and $130,900 on machine Y.On March 24, FineTouch paid a total of $4,800 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $5,600 was paid on March 29 for improvements to machine Y. On March 31, 2020, both machines were ready to be used.The company expects machine X to last five years and to have a residual value of $3,600 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $14,580 at that time. Due to the different characteristics of the two machines,…
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 March 20, 2020, FineTouch Corporation purchased two machines at auction for a combined total cost of $212,000. The machines were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, FineTouch had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $111,320 on machine X and $130,680 on machine Y.On March 24, FineTouch paid a total of $5,000 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $6,200 was paid on March 29 for improvements to machine Y. On March 31, 2020, both machines were ready to be used.The company expects machine X to last five years and to have a residual value of $4,200 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $14,900 at that time. Due to the different characteristics of the two machines,…
In June 2020, Sue exchanges a sport-utility vehicle (adjusted basis of $16,000; fair market value of $19,500) for cash of $2,000 and a pickup truck (fair market value of $17,500). Both vehicles are for business use. Sue believes that her basis for the truck is $17,500. Is Sue correct? Why or why not? As part of your response, compute Sue’s realized gain or loss (and recognized gain or loss, if any) on the exchange.
At the beginning of current year, an entity purchased 100 cows which are 3 years old for P15,000 each for the purpose of producing milk for the local community. On July 1, the cows gave birth to 20 calves. The active market, provided the fair value less costs to sell of the biological assets as follows: New born calf on July 1 - 4,000 New born calf on December 31 - 5,000 ½ year old calf on December 31 - 7,000 3 years old cow on December 31 - 18,000 4 years old cow on December 31 - 24,000 Required: Prepare the journal entries with supporting computation as applicable.
6. On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 years old for a total cost of P1,350,000. On December 31, the cows gave birth to 15 calves. The following information on fair value less cost of disposal of biological assets is made available: (Refer to image) What amount of gain from biological assets will KAW Inc. report in its December 31 Income Statement?
On January 1, 20x1, the biological assets of SUAVE POLISHED Co. consist of ten 2 year old animals with fair value less cost to sell of ₱40,000 each for a total of ₱400,000. Transactions during the year include the following: • One animal aged 2.5 years was purchased on July 1, 20x1 for ₱43,200. • One animal was born on July 1, 20x1.• No animals were sold or disposed of during the period. Per-unit fair values less costs to sell are as follows:• Newborn animal at July 1, 20X1 28,000• 2.5 year old animal at July 1, 20X1 43,200• Newborn animal at 31 December 20X1 28,800• 0.5 year old animal at 31 December 20X1 32,000• 2 year old animal at 31 December 20X1 42,000• 2.5 year old animal at 31 December 20X1 44,400• 3 year old animal at 31 December 20X1 48,000How much is the gain on change in fair value less costs to sell due to price change? a. 22,000 b. 94,800 c. 34,800 d. 122,000
Individual A purchased a cottage in 2002 for $205,928. the cottage foes not qualify for the principal residence exemption. In 2020, Individual A sold the cottage to Individual B for $205,928. Individual A and Individual B are sisters. At the time of sale, the cottage had a fair market value of $343, 162. What is the adjusted cost base of the cottage to Individual B immediately after the 2020 sale? Enter your response as a positive number. round your answer to the nearest dollar and do not enter any symbols. Please show the work
On January 1, 2021, Tabitha Designs purchased a patent for $294,000 giving it exclusive rights to manufacture a new type of synthetic clothing. While the patent had a remaining legal life of 15 years at the time of purchase, Tabitha expects the useful life to be only eight more years. In addition, Tabitha purchased equipment related to production of the new clothing for $146,000. The equipment has a physical life of 10 years, but Tabitha plans to use the equipment only over the patent's service life and then sell it for an estimated $20,000. Tabitha uses straight-line for all long-term assets. The amount to expense in 2024 related to the patent and equipment should be: