FORESTER COMPANY
AFR/CA COMPA C OMPANY NY
Forester Company has reclassified certain assets as biological assets The total !al"e of forest assets assets is P#$%%%$%%% &hich comprises P'$(%%$%%% freestanding trees$ P#%%$%%% land "nder trees and P)%%$%%% roads in forest
Africa Company p"rchased 0%%% llamas at the begging of c"rrent year These llamas &ill be sheared semiann"ally and their &ool sold to specialty clothing man"fact"res The llamas &ere p"rchased for P'$%%%$%%% 1"ring the c"rrent year$ the change in fair !al"e d"e to gro&th and price changes is P)'%$%%%$ the &ool har!ested b"t not yet sold is !al"ed at net reali2able !al"e ! al"e of P(%%$%%%$ and the decrease in fair !al"e d"e to har!est is P'%$%%%
*hat amo"nt sho"ld be reported as biological b iological assets+ a.) 5,100,000
b, '$-%%$%%% c, '$.%%$%%%
*hat is the carrying amo"nt of the biological asset at year3end+
d, #$%%%$%%%
a, '$)%%$%%%
Land under unde r trees and roads in forest should be classified as property, plant, plant, and equipment.
b, '$.%%$%%% c.) 5,400,000
d, '$(%%$%%%
SO45T/ON 4lamas p"rchased
P'$%%%$%%%
Change in fair !al"e
)'%$%%%
*ool har!ested b"t b"t not yet sold
(%%$%% $%%%
1ecrease in fair !al"e
6'%$%%%,
Biological assets
5,400,000
TEMER/TY COMPANY Temerity Company has different 7inds of farm animals on 8an"ary ($ 0%(' 1"ring the c"rrent year$ se!eral ac9"isitions occ"rred related to these farm animals A detailed of these transactions is as follo&s: Carrying amo"nt on 8an"ary (: (' ;orses (% 1airy Cattle < Carabaos 0% ;ogs
6( 60 60' 6)
year old, years old, years old, years old,
($%%%$%%% .%%$%%% 0%%$%%% '%%$%%%
P"rchases on 8"ne )%: . 1airy Cattle # Carabaos
6( 6#
year old, months old,
('%$%%% (%%$%%%
( *hat is the carrying amo"nt of the biological assets on 1ecember )(+ a, )$(#%$%%% b.) 2,350,000 c, 0$<%%$%%% d, 0$)<%$%%% (' ;orses (% 1airy cattle < Carabaos 0% ;ogs Carrying amo"nt38an ( P"rchases . 1airy Cattle # Carabaos Total Biological Assets
($%%%$%%% .%%$%%% 0%%$%%% '%%$%%% 0$(%%$%%% ('%$%%% (%%$%%% 2,350,000
Fair !al"e less cost of disposal on 1ecember )(: (' ;orses (% 1airy cattle < Carabaos 0% ;ogs . 1airy cattle # Carabaos
6( 60 60' 6) 6( 6#
year old, years old, years old, years old, year old, months old,
($0%%$%%% '0%$%%% 0'%%%% ''%$%%% (-%$%%% ((%$%%%
0 *hat is the gain from change in fair !al"e attrib"table to price change+ a, <(%$%%% b, .'%$%%% c, )#%$%%% d, %
Fair !al"e less cost of disposal in 1ecember )(: (' ;orses (% 1airy cattle < Carabaos 0% ;ogs . 1airy cattle # Carabaos
60 6) 6)' 6. 6(' 6(
years old, years old, years old, years old, years old, year old,
($)'%$%%% '<%$%%% 0=%%%% #%%$%%% 0%%$%%% (.%$%%%
There &ere no farm animals sold d"ring the year and neither &ee there any neither ne&borns nor deaths
), *hat is the gain from changes in fair !al"e attrib"table to physical change+ a, <(%$%%% b, .'%$%%% c, )#%$%%% d, -%%$%%%
