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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
image text in transcribed
During 2019, you were asked to audit the Goat Farm operations of MJ Inc. MJ owns and operates a goat farm that qualifies to be accounted for as Agriculture under PAS 41. On December 31, 2019, the biological assets are: Purchased before January 1, 2019 3 years old 1,260 Goats Purchased on January 1, 2019 2 years old 180 Kids Purchased on July 1, 2019 1.5 years old 450 Kids There was no other transaction during the year concerning the biological assets. No animals were born during the year and no animals were sold during the year. Given below is the date regarding the selling price and cost to sell of the biological assets. January 1, 2019: Selling Price Cost to Sell 1 yr old 1,900 100 2 yr old 2,480 80 July 1, 2019: 1 yr old 1,850 50 December 31, 2019 1 yr old 2,000 80 2 yr old 2,800 100 1.5 yr old 2,200 40 3 yr old 3,500 500

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