INTERMEDIATE ACCOUNTING

Malonie Company provided the following data: Value of biological assets at acquisition cost on

December 31, 2014 Fair valuation surplus on initial recognition at fair value on December 31,2014 Change in fair value to December 31, 2015 due to growth and price fluctuation	600,000
700,000
100,000
Decrease in fair value to harvest	90,000

1. What is the carrying amount of the biological asset on December 31, 2015? 2. What is the gain from change in fair value of biological assets that should be reported in the 2015 income statement? M & M Company is engaged in raising dairy livestock. Information regarding activities to the dairy livestock during the current year is a s follows:

Carrying amount on January 1	5,000,000
Increase due to purchases Gain arising from change in fair value less cost of disposal attributed to price change Gain arising from change in fair value less cost of disposal attributable to physical change	2,000,000
400,000
600,000
Decrease due to sales	850,000
Decrease due to harvest	200,000

3. What is the carrying amount of the biological asset on December 31? Precious Company had the following property acquisitions during 2006: Acquired a tract of land with an existing building in exchange for 50,000 shares of Precious Companys P100 par value common stock that had a market price of P120 per share on the date of acquisition. The last property tax bill indicated assessed value of P2,400,000 for the land and P600,000 for the building. Shortly after acquisition the building was razed at cost of P100,000 in anticipation of a new building construction in 2006. Received land from a major stockholder as an inducement to locate a plant in the city. No payment was required but Precious paid P50,000 for legal expenses for land transfer. The land is fairly valued at P1,000,000. 4. What is the total increase in land as result of the acquisition? a. 7,000,000 b. 6,100,000 c. 7,150,000 d. 7,100,000 Yola Company and Zaro Company are fuel oil distributors. To facilitate the delivery of oil to their customers, Yola and Zaro exchanged ownership of 1,200 barrels of oil without physically moving the oil. paid Zaro P300,000 to compensate for a difference in the grade of oil. It is reliably determined that the exchange lacks commercial substance. On the date of the exchange, cost and market value of the oil were as follows:

Yola Company	Zaro Company
Cost	1,000,000	1,400,000
Market value	1,200,000	1,500,000

5. Yola Company shall record the oil inventory received in exchanged at a. 1,000,000 b. 1,200,000 c. 1,300,000 d. 1,500,000 6. Zaro Company shall record the oil inventory received in exchange at a. 1,400,000 b. 1,500,000 c. 1,100,000 d. 1,200,000

sme COSTO De coprzed us trademark STIOIDES Assessment 3 600.000 Malonie Company provided the following data. Value of biological assets at acquisition cost on December 31, 2014 Fair valuation surplus on initial recognition at fair value on December 31, 2014 Change in fair value to December 31, 2015 due to growth and price fluctuation Decrease in fair value lo harvest 700.000 100.0od 90.000 1. What is the carrying amount of the biological asset on December 2015 2. What is the gain from change in far value of biological assets that should be reported in the 2015 income statement MBM Company n engaged in toning Avestock notihon tegarding RAL Ces to the day livestock during the current years as follow Carrying amount on January 5,000,000 Increase due to purchases 2.000.000 Gain arising from change in fair value less cost of disposai attributed to price change 400,000 Gain arising from change in fair value less cost of disposal attributable to physical change 600.000 Decrease due to sales 850.000 Decrease due to harvest 200,000 3. What is the carrying amount of the biological asset on Deo recerhber 312 Precious Company had the following property acquisitions during 2006 Acquired a tract of land with an existing building in exchange for 50.000 shares of Precious Company's P100 par value common stock that had a market price of P120 per share on the date of acquisition The last property tax bi indicated assessed value of P2.400 ODO for the land and P600,000 for the bulding Shortly after acquition the building was one of cost of P100.000 in carticipation of a new building construction in 2006 Heceivedland from a mi stockholder aan inducemento locale a RAMA CUADCAMERA Ordine city payment wood but copold Pacoor anticipation or w building coNSTRUCTION in 2006. Received land from a major stockholder as an inducement to locale a plant in the city. No payment was required but Precious paid P50,000 for legal expenses for land transfer. The land is fairly valued at P1.000.000 4. What is the total increase in land as result of the acquisition? 7.000.000 b. 6.100.000 c. 7.150,000 d. 7.100,000 Yola Company and 7aro Company are fuel oi distributors. To facilitate the delivery of oil to their customers, Yola and Zato exchanged ownership of 1.200 barrels of oil without physically moving the oil paid Zaro P300,000 to compensate for a difference in the grade of oil. It is reliably determined that the exchange lacks commercial substance. On the date of the exchange, cost and market value of the oil were as folows: Yola Company Zoro Company Cost 1.000.000 1.400.000 Market value 1.200.000 1.500.000 5. Yola Company shall record the oil inventory received in exchanged of a. 1.000.000 b. 1.200.000 1.300.000 d. 1.500.000 ROAD CAMERA Laro Company shall record the bil inventory received in exchange al 1,400.000 b. 500.000 1 100.000 d. 1.200,000