Question
On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 years old for a total cost of P1,350,000. On December 31,
On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 years old for a total cost of P1,350,000. On December 31, the cows gave birth to 15 calves. The following information on fair value less cost of disposal of biological assets is made available:
| 2.5 years old cow on December 31 | 20,000 |
| 3 years old cow on December 31 | 25,000 |
| Newborn calf on July 1 | 5,000 |
| Newborn calf on December 31 | 6,500 |
What amount of gain from biological assets will KAW Inc. report in its December 31 Income Statement?
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QuickBooks A Beginners Guide For Bookkeeping And Accounting For Small Businesses
Authors: Adam J. Belfort
1st Edition
8615413703, 979-8615413704
