Question
Rhode Island Company produces milk for sale to local and national ice cream producers. The entity began operations on January 1, 2019 by purchasing 650
Rhode Island Company produces milk for sale to local and national ice cream producers. The entity began operations on January 1, 2019 by purchasing 650 milk cows for P8,000,000. The entity had the following information available at year-end relating to the cows: a. Acquisition cost, P8,000,000 January 1, 2019 b. Change in fair value due to 2,500,000 growth and price changes c. Decrease in fair 250,000 value due to harvest d. Milk harvested during 400,000 2019 but not yet sold What amount of gain on change in fair value should be recognized for biological asset in 2019?
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