1. Hori Company provided the following assets in a forest plantation and farm:

Freestanding trees 5,000,000

Land under trees 600,000

Roads in forest 300,000

Animals related to recreational activities 1,000,000

Bearer plants 1,500,000

Bearer animals 2,000,000

Agricultural produce growing on bearer plants 800,000

Agricultural produce harvested 1,200,000

Plants with dual use 1,400,000

What total amount should be reported as biological assets?

2. Yeager Company 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 purchases 2,000,000

Gain arising from change in fair value 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?

3. Which statement is true about biological assets?

a. biological assets are measured at fair value less cost of disposal

b. when fair value cannot be determined reliably, the biological asset shall be measured at cost less accumulated depreciation and impairment.

c. there is a presumption that the fair value of biological asset can be measured reliably.

d. All of these statements are true about biological assets.

4. Generally speaking, biological assets relating to agricultural activity shall be measured using

a. Historical Cost

b. Historical cost less depreciation less impairment

c. A fair value approach

d. Net realizable value