INTERMEDIATE ACCOUNTING

1. Maxpein Company has reclassified certain assets as biological assets. The total value of the forest assets is P6, 000,000 which comprises:

Freestanding trees	5,100,000
Land under trees	600,000
Roads in forests 6,000,000	300,000

In the statement of financial portion, what total amount of the forest assets should be classified as biological assets? 2.Naih Company is a producer of coffee. The entity is considering the valuation of harvested coffee beans. Industry practice is to value the coffee beans at market value and uses as reference a local publication Accounting for Successful Farms On December 31, 2014, the entity has harvested coffee beans costing P3, 000,000 and with fair value less cost of disposal of P3, 500,000 at the point harvest. Because of long aging and maturation process after harvest, the harvested coffee beans were still on hand on December 31, 2015. On such date, the fair value less cost of disposal is P3, 900,000 and the net realizable value is P3, 200,000. What is the measurement of the coffee beans inventory on December 31, 2014? 3.On August 1, 2006, Bamco Company purchased a new machine on a deferred payment basis. A down payment of P100,000 was made and 4 montly installments of P250,000 each are to be made beginning on September 1, 2006. The cash equivalent price of the machine was P950,000. Bamco incurred and paid installation costs amounting to P30,000. The amount to be capitalized as the cost of the machine is a. 950,000 b. 980,000 c. 1,100,000 d. 1,130,000 4. On April 30, 2019, Shark Corporation purchased for P 30 per share all 200,000 of Fins Corporations outstanding ordinary share. On this date, Fins balance sheet showed net assets of P 5,000,000. Additionally, the fair value of Fins identifiable assets on the same date was P600,000 in excess of their carrying amount. What amount should Shark report as goodwill in its April 30, 2019 consolidated balance sheet?