Question
At January 1, 2004, Annie company held a group of twenty 2-year old cattle. Five 2-year old cattle were purchased on January 2, 2004 for
At January 1, 2004, Annie company held a group of twenty 2-year old cattle. Five 2-year old cattle were purchased on January 2, 2004 for P12,000 each and 5 calves were born on January 2, 2004. No other biological assets were disposed off during the period. Per unit fair values less cost to sell were as follows:
January 1, 2004 2 year old cattle - 12,000 php New born cattle - 4,000 php
December 31, 2004 2 year old cattle - 13,000 php 3 year old cattle - 15,000 php 1 year old cattle - 7,000 php New born - 5,000 php
The increase in fair value less cost to sell due to physical change and change in fair value less cost to sell due to price change is recorded separately by Annie company.
Assuming that ten 3 year old cattle were sold which realized net proceeds of 15,000 on each cattle, how much gross income shall be reported on Annie company's profit or loss for the year ended December 31, 2004?
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