Problem 11 11. Sweet Corn Inc. harvested cornwith fair value of P700,000 at thedate of harvest. Estimated cost tosell is P20,000. At year end, it wasdetermined that the net realizablevalue of the corn amounted toP660,000 and no corn has been soldat year end. At what amount shall beharvested corn be initially recognizedin accordance with IAS 41Agriculture?

Biological assets Living assets are called biological Assets Eg. Trees, Animals, or cannabis.

Answered: 11. Sweet Corn Inc. harvested corn with…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 40P

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HYACINTH Company's standing sugar cane fair value as of January 1, 2020 was ₱2,700,000 and as of December 31, 2020 was ₱2,800,000. The biological asset has a life span of less than a year and has no dual purpose. The selling price of the agricultural produce harvested during the period was ₱2,100,000, on the respective dates of harvest. The estimated cost to sell is ₱100,000. What net amount of gain should HYACINTH report in its December 31, 2020 profit or loss related to the biological asset and agricultural produce?
DAFFODIL Company's standing sugar cane fair value as of January 1, 2020 was ₱2,700,000 and as of December 31, 2020 was ₱2,800,000. The biological asset has a life span of less than a year and has no dual purpose. The selling price of the agricultural produce harvested during the period was ₱2,100,000, on the respective dates of harvest. The estimated cost to sell is ₱100,000. What net amount of gain should DAFFODIL report in its December 31, 2020 profit or loss related to the biological asset and agricultural produce? ₱ 100,000 ₱ 2,200,000 ₱ 2,100,000 ₱ 2,000,000
On December 30, 2021, the Apple Kingdom Farm harvested apples with fair value of P 200,000 and an estimated cost to sell of P5,000. The apples were not recorded as biological assets while it grew on trees. At year-end, the fair value declined slightly to P190,000 while its net realizable value is P210,000. On January 1, 2020, all of the apples had been sold for P200,000, the company paid selling cost of P 1,000. What is the journal entry to record the harvested apples on December 30, 2021?
PEARS Company's standing sugar cane fair value as of January 1, 2023 was P2,700,000 and as of December 31, 2023 was P2,800,000. The biological asset has a life span of less than a year and has no dual purpose. The selling price of the agricultural produce harvested during the period was P2,100,000, on the respective dates of harvest. The estimated cost to sell is P100,000. What net amount of gain should PEARS report in its December 31, 2020 profit or loss related to the biological asset and agricultural produce?A. P 100.000B. P 2,000,000C. P 2,100,000D. P 2,200,000
On January 1, 2022, Plantitos Company purchased a vineyard costing P 12,000,000 which is determined to produce fruit for a period of 5 years. During the year, Plantitos harvested grapes with a fair value less cost to dispose of P 4,000,000. By the end of 2021, it sold the grapes for P 7,000,000. What amount should be reported as gross profit from sales? a. P 3,000,000 b. P 3 500,000 c. P 7,000,000 d. P4,000,000
Nelly Company commences cultivation of oil palm crop on January 1, 2019. Costs (planting materials, labor and other planting costs) were incurred in 2019 to develop a 10-hectare oil palm crop amounted to P4,000,000. On December 31, 2019, the fair value of the land with a one-year old crop was valued at P24,000,000. The fair value of an equivalent raw agricultural land was valued at P18,000,000. What is the amount of profit from plantation operation for the year ended December 31, 2019?
Problem 13
On January 1, 2022, Plantitos Company purchased a vineyard costing P 12,000,000 which is determined to produce fruit for a period of 5 years. During the year, Plantitos harvested grapes with a fair value less cost to dispose of P 4,000,000. By the end of 2021, it sold the grapes for P 7.000,000. What amount should be reported as gross profit from sales? O P4,000.000 O P3,500.000 O P3.000,000 O P7000.000
Show your computation On 1 January 2021, a company had a herd of 1,500 cows, all of which were 3 years old. At this date, the fair value less point of sale costs of the herd was $900,000. On 1 July 2021, the farmer purchased 500 cows (each two and half years old) for $700 each. As at 31 December 2021, The company sold 800 cows for $825 each. The herd also produced 2.5 tons milk that could be sold for $4 per kg in the market. Market auctioneers have charged a sales levy of 2% for each cow. Required: Discuss the accounting treatment of the above in the financial statements for the year ended 31 December 2021.
On December 30, 2021, the Green Pasteur Farms slaughtered cows with fair value of P 400,000. Estimated cost to sell of P 20,000 includes transportation cost of P 3,000 to bring the cows to slaughter house, and another transportation cost of P 2.000 to bring the carcasses to the market. At year-end, no meat had been sold but its fair value on this date is P 410,000 while its net realizable value is P 405.000. What amount should the agricultural produce be recorded on December 30, 2021? a. P 383,000 b. P 382,000 c. P400,000 d. P 385,000
On December 30, 2021, the Green Pasteur Farms slaughtered cows with fair value of P 400,000. Estimated cost to sell of P 20,000 includes transportation cost of P 3,000 to bring the cows to slaughter house, and another transportation cost of P 2,000 to bring the carcasses to the market. At year-end, no meat had been sold but its fair value on this date is P 410,000 while its net realizable value is P 405,000. What amount should the agricultural produce be reported on December 31, 2021?
6. Rosas Company started a promotional program in which for every 15 box tops returned, customers received a special mug. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information for the current year: Units Amount Product Sales 10,000 20,000,000 150,000 Mugs purchased 500 Mugs distributed 350 What amount should be recorded by Rosas Company as Estimated Liability for the current year?

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