Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 Jan. 1, Fair Value Value Farm with 3-year old bearer tree P3.000,000 P2,400,000 Farm with 4-year old bearer tree 4,200,000 P3,600,000 Farm with 5-year old bearer tree, Including the fruit they bear 6,380,000 P5,400,000 5-year old trees started to bear fruit during the last quarter of the year. As of December 31, 2018, only 5-year old trees bear fruits that are ready to be harvested. The estimated fair value less cost to sell for the fruits is P500.000. There was no change in the fair value of the contributory asset (land) as of December 31, 2018 If the bearer plants are considered to have dual purpose, by what amount of the change in the fair value of the bearer plants that pertains to the physical transformation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Business Law

Authors: Anthony Liuzzo, Ruth Calhoun Hughes

11th Edition

ISBN: 1260734544, 978-1260734546

More Books

Students also viewed these Law questions

Question

=+7. What is the big message you want them to know? (THINK SLOGAN.)

Answered: 1 week ago