Question
Meatballs Company purchased forest assets for a lump sum amount of P45,000,000 which is equal to the lump sum value of the group of assets.
Meatballs Company purchased forest assets for a lump sum amount of P45,000,000 which is equal to the lump sum value of the group of assets. At the time of purchase, the company is unable to determine the fair value of the trees separately since no active market was clearly available. The other assets are the group had a determinable fair value. The forest assets are listed below and their related fair value less point to sell costs: Land under trees- P9,500,000; and Road in forest- P7,000,000. What amount should the biological asset be initially recorded
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started