how to fix the problem E9.8

ned its forma- Exercises 9.29 19.8 (L02) (Valuation at The alpaca are sheare Valuation at Net Realizable Value) Mt. Horeb Alpaca Co. has a herd of 150 alpaca sheared once a quarter to harvest very valuable alpaca wool that is used in designet toreb has the following information related to the alpaca herd at July 1. 2019, and during sweaters. Mt. Horel first quarter of the fiscal year. Alpaca ving value (equal to net realizable value), July 1, 2019 ange in fair value due to growth and price changes Decrease in fair value due to harvest aca wool harvested during the first quarter (at net realizable value) $120.000 7.700 (975) 13,000 ing old Instructions the journal entries for Mt. Horeb's biological asset (Alpaca herd) for the first quarter. Prepare the journal entries for the Alpaca wool harvested in the first quarter. c Prepare the journal entry when the Alpaca wool is sold for $14.500. d. Briefly discuss the impact on income of the following events related to the alpaca biological asset: (1) a female alpaca gives birth to a baby alpaca, and (2) an older alpaca can only be sheared once every other quarter due to irritation caused by repeated shearing over its life. E99 (L02) (Relative Standalone Sales Value Method) Larsen Realty Ltd. purchased a tract of un- improved land for 55,000. This land was improved and subdivided into building lots at an additional cost of 30,000. These building lots were all of the same size. However, owing to differences in location, the lots were offered for sale at different prices as follows. Price ner Lot ned its forma- Exercises 9.29 19.8 (L02) (Valuation at The alpaca are sheare Valuation at Net Realizable Value) Mt. Horeb Alpaca Co. has a herd of 150 alpaca sheared once a quarter to harvest very valuable alpaca wool that is used in designet toreb has the following information related to the alpaca herd at July 1. 2019, and during sweaters. Mt. Horel first quarter of the fiscal year. Alpaca ving value (equal to net realizable value), July 1, 2019 ange in fair value due to growth and price changes Decrease in fair value due to harvest aca wool harvested during the first quarter (at net realizable value) $120.000 7.700 (975) 13,000 ing old Instructions the journal entries for Mt. Horeb's biological asset (Alpaca herd) for the first quarter. Prepare the journal entries for the Alpaca wool harvested in the first quarter. c Prepare the journal entry when the Alpaca wool is sold for $14.500. d. Briefly discuss the impact on income of the following events related to the alpaca biological asset: (1) a female alpaca gives birth to a baby alpaca, and (2) an older alpaca can only be sheared once every other quarter due to irritation caused by repeated shearing over its life. E99 (L02) (Relative Standalone Sales Value Method) Larsen Realty Ltd. purchased a tract of un- improved land for 55,000. This land was improved and subdivided into building lots at an additional cost of 30,000. These building lots were all of the same size. However, owing to differences in location, the lots were offered for sale at different prices as follows. Price ner Lot