Question
On January 1, 2018, the biological assets of Google Company consists of eleven 2-year-old animals with fair value less cost to sell of P10,000 each
On January 1, 2018, the biological assets of Google Company consists of eleven 2-year-old animals with fair value less cost to sell of P10,000 each for a total of P110,000. Transactions during the year include the following: One animal aged 2.5 years was purchased on July 1, 2018 for P10,600; and one animal was born on July 1, 2018. No animals were sold or disposed of during the period. Per unit fair values less cost to sell are as follows:
New-born animal on July 1 7,000
2-year-old animal on July 1 10,300
2.5-year-old animal on July 1 10,600
3-year-old animal on July 1 13,000
New-born animal on December 31 7,200
0.5-year-old animal on December 31 8,000
2-year-old animal on December 31 10,500
2.5-year-old animal on December 31 11,100
3-year-old animal on December 31 12,000
1. What is the fair value of the biological assets on December 31, 2018? *
140,000
144,000
152,000
160,000
2. What is the gain from change in fair value of the biological assets due to price change in 2018? *
- 9,000
- 9,800
- 6,000
- 6,200
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