Dayag Farms is into cultivating agricultural lands. As of January 1, 2018, the company has a farm located in the province of Cagayan that consist of two age group of bearer trees, 3-year old and 4-year old. The following are relevant information:

Dec. 31 Fair Value Jan. 1 Fair Value Farm with 3year old bearer P3,000,000 P2,400,000 tree Farm with 4year old bearer 4,200,000 3,600,000 tree Farm with 5year old bearer 6,380,000 5,400,000 tree, including the fruit they bear