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? * 2.5 years old cow on December 31 3 years old cow on December 31 Newborn calf on July 1 20,000 25,000 5,000 Newborn calf on December 31 6,500

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? * 2.5 years old cow on December 31 3 years old cow on December 31 Newborn calf on July 1 20,000 25,000 5,000 Newborn calf on December 31 6,500

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Description: On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 yearsold for a total cost of P1,350,000. On December 31, the cows gave birth to15 calves. The following information on fair value less cost of disposal ofbiological assets is made av

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7PA: Tree Lovers Inc. purchased 100 acres of woodland in which the company intends to harvest the...

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Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete forest, leaving the land barren and worthless. Tree Lovers paid $5,000,000 for the land. Tree Lovers will sell the lumber as it is harvested and it expects to deplete it over ten years (150 acres in year one, 300 acres in year two, 250 acres in year three, 150 acres in year four, and 100 acres in year five). Calculate the depletion expense for the next five years and create the journal entry for year one.
Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny Side had net assets worth $390,000. A. What is the amount of goodwill in this transaction? B. What is Farm Fresh Agriculture Companys journal entry to record the purchase of Sunny Side Egg Distribution? C. What journal entry should Farm Fresh Agriculture Company write when the company tests for impairment and determines that goodwill is worth $1,000 in the year following the purchase of Sunny Side?
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? 2.5 year old cow on deceber 31 20,000 3 years old cow on december 31 25,000 new born calf on july 1 5,000 new born calf on december 31 6,500
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?
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.
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 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
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
Cake Company has a herd of ten 2-year old animals on January 1, 2023. One animal aged 2.5 years was purchased on July 1, 2023 for P10,000 and one animal was born on July 1, 2023. No animals were sold or disposed during the year. The fair value less cost to sell per unit were: Newborn animal, July 1-P7,000 Newborn animal, December 31-P7,200 0.5-year old animal, December 31-P8,000 2-year old animal, January 1-P10,000 2-year old animal, December 31-P10,500 2.5-year old animal, July 1-P10,800 2.5-year old animal, December 31-P11,100 3-year old animal, December 31-P12,000 The December 31, 2023 statement of financial position should report biological assets of:
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
Goldilocks Farm Company purchased dairy cattle at an auction for ₱300,000 on July 1, 2014. Cost of transporting the cattle to the company’s farm was ₱3,000 and the company would have to incur cost similar amount of transportation cost if it was to sell the cattle in the auction, in addition to the auctioneer’s fee of 2% of sales price. On December 31, 2014, after taking into account and location, the fair value of the biological assets had increased to ₱500,000 (that is, the market price including the cost of transporting the asset).What amount of gain or loss should the company include in the statement of comprehensive income due to the change in the fair value of the biological assets? a.₱193,000 b.₱196,000 c.₱200,000 d.₱209,000