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PROBLEM Q: Legend Dairy produced milk for local ice cream producers. The entity began operations at the beginning of current year by purchasing milking cows
PROBLEM Q: Legend Dairy produced milk for local ice cream producers. The entity began operations at the beginning of current year by purchasing milking cows for P2,000,000 The entity provided the following information at year-end relating to the milking cows: Carrying amount - January 1 2,000,000 Change in fair value due to growth and price change 400,000 Decrease in fair value due to harvest 50,000 Milk harvested during the year but not yet sold 150,000 25. What is the carrying amount of the biological asset at year end? A. 2,000,000 B. 2,350,000 C. 2,400,000 D. 2,500,000 PROBLEM R: On April 1, 2019, Brie Company had a machine with a cost of P1,000,000 and accumulated depreciation of P750,000 On the same date, the entity classified the machine as "held for sale" and decided to sell the machine within one year. The machine had an estimated selling price of P100,000 and a remaining useful life of two years. It is estimated that the disposal cost of the machine will be P10,000. On December 31, 2019, the estimated selling price of the machine had increased to p150,000 with estimated disposal cost of P20,000 26. What amount should be recognized as gain on reversal of impairment on December 31, 2019? A. 40,000 B. 60,000 C. 73,750 D. 93,750 27. An entity shall measure a non-current asset or disposal group classified as held for sale at A. Carrying amount B. Fair value less cost of disposal C. Lower of carrying amount and fair value less cost of disposal D. Higher of carrying amount and fair value less cost of disposal
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