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- P6,000 What 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- P6,000
What 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
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