Salve Co is engaged in raising dairy livestock. The entity provided the following information during the current year: Carrying Amount - Beginning 5,000,000 Increase due to purchase 2,000,000 Gain arising from change in FV 1,000,000 Decrease due to sales 850,000 Decrease due to harvest 200,000 What is the carrying amount of the biological asset at year-end?

Salve Co is engaged in raising dairy livestock. The entity provided the following information during the current year: Carrying Amount - Beginning 5,000,000 Increase due to purchase 2,000,000 Gain arising from change in FV 1,000,000 Decrease due to sales 850,000 Decrease due to harvest 200,000 What is the carrying amount of the biological asset at year-end?

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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PT Milkisu produced milk for sale to local and national cream producers. The entity beganoperations at a beginning of current year by purchasing 500 milk cows for CU8.000.000.The entity had the following information available at year-end relating to the cows:Carrying amount of milking cows, Jan 1 8.000.000Change in fair value due to growth and price change 900.000Decrease in fair value due to harvest 200.000Milk harvested during the year but not sold 400.000Required: 1. Is the natural breeding of animals in zoos and game parks agricultural activity?2. Is ocean fishing agricultural activity?3. Is palm plantation agricultural activity? Describe the accounting treatment forbiological assets and agricultural products in oil palm plantations
PT Milkisu produced milk for sale to local and national cream producers. The entity beganoperations at a beginning of current year by purchasing 500 milk cows for CU8.000.000.The entity had the following information available at year-end relating to the cows:Carrying amount of milking cows, Jan 1 8.000.000Change in fair value due to growth and price change 900.000Decrease in fair value due to harvest 200.000Milk harvested during the year but not sold 400.000Required:Discuss and prepare journal entries:1. To record the acquisition of milking cows2. To record the net gain from the change in fair value of the milking cows3. To record the gain from change in fair value of agricultural produce
PT Milkisu produced milk for sale to local and national cream producers. The entity began operations at a beginning of current year by purchasing 500 milk cows for CU8.000.000. The entity had the following information available at year-end relating to the cows:Carrying amount of milking cows, Jan 1 8.000.000Change in fair value due to growth and price change 900.000Decrease in fair value due to harvest 200.000Milk harvested during the year but not sold 400.000 Prepare journal entries to record the gain from change in fair value of agricultural produce
WeCareCows Company produces dairy products for sale to grocery stores and direct consumers. When they started their operations, they bought 650 milk cows for P8,000,000. The following information are provided during the year: • Acquisition cost, January 1- P8,000,000 • Change in fair value due to growth and price changes- P2,500,000 • Decrease in fair value due to harvest- P250,000 • Milk harvested during the year but not yet sold- P400,000 What amount of gain on change in fair value should be recognized for biological assets for the year? A. P2,650,000 B. P2,900,000 C. P2,500,000 D. P2,250,000
Marko Corporation has several assets for classification as biological assets. After reviewing the data gathered shown in the image, how much should Marko report as net gain from change in fair value of biological assets for the quarter? Cows and sheep Cocoa trees Cocoa pods kept in storage for the whole period Cost 300,000 400,000 Carrying Value, April 1, 2020 800,000 900,000 200,000 Increase or (decrease) in value from price change (40,000) (50,000) 20,000 Increase or (decrease) in value from physical change 100,000 180,000 50,000
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? 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?
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.
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
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?
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

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bartleby, a Learneo, Inc. business

Carrying Amount - Beginning	5,000,000
Increase due to purchase	2,000,000
Gain arising from change in FV	1,000,000
Decrease due to sales	850,000
Decrease due to harvest	200,000