Determine the carrying values of the Bearer Plant as at December 31, 2021?

2. Determine the carrying values of the Total Property, Plant and Equipment (excluding Bearer plant) assuming the entity elected to use the cost model for measuring PPE as at December 31, 2021?

3. Determine the carrying value of the Combined Biological Asset and Agricultural Produce as at December 31,2021?

  

You were assigned to audit the various long-term assets of your audit firm's client Orchid Inc. for the period ended December 31, 2021, its first year of operations. The company is operating a 100-hectare farmland which is employed to produce three main agricultural products - mangoes, corn and beef. The accountant of the client provided the following schedule of long-term assets: 100 hectare farm land at Cost (FMV as at 12/31 at P20M) Mango trees at FMV less cost to sell (Cost P3M) Partially developed mango fruits at FMV less cost to sell Corn plants at FMV less cost to sell (Cost P1.2M) Partially developed corn ears at FMV less cost to sell Beef cattles at FMV less cost to sell (Cost P2M) Patent at cost Warehouse building at cost Farm equipment at cost Office building at cost Office equipment at cost Corn plants Beef cattles Warehouse building Office building Farm and Office Equipment 10 years 1 year 10 years 16 years 20 years P12,000,000 Audit notes: All assets, where applicable are to be depreciated using the straight-line method over the following expected useful lives: Mango trees 8 years 4,200,000 550,000 600,000 900,000 2,400,000 650,000 800,000 1,200,000 2,000,000 1,500,000