Question
Lincoln Orchard Ltd grows apples, which are sold to the supermarkets. At 1 April 2020, Lincoln Orchard Ltds apple trees had a fair value of
Lincoln Orchard Ltd grows apples, which are sold to the supermarkets. At 1 April 2020, Lincoln Orchard Ltds apple trees had a fair value of $600,000. On 31 January 2021, the apples harvested had a fair value of $150,000. The selling cost were estimated at $5,000.
80% of the apples were sold for $140,000 on credit on 1 March 2020. Selling costs of $4,000 were paid by cash on the same day. Fertiliser and harvest costs were $10,000 for the year, all paid by cash. On 31 March 2021, the fair value of the apple trees was $650,000. The business uses the revaluation model to account for the bearer plants. The balance day for Lincoln Orchard Ltd is 31 March 2021.
The fertiliser and harvest costs.
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The harvesting of the agriculture produce from the biological assets.
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The sale of the agricultural produce and associated selling cost.
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The change in the fair value of the biological assets during the year.
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How much is Lincoln Orchard Ltds net profit for the year ended 31 March 2021? Please show your workings. |
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