A group of thirty 2-year old cattle was held at January 1, 2021. On this same date, additional five 2-year old cows were purchased at P12,500 each and five healthy calves were born. No cows or calves were sold during the year. Per unit fair values less costs to sell were as follows: January 1, 2021 2-year old cattle-12,500 Newborn cattle-4,000 December 31, 2021: 3-year old cattle-15,000 2-year old cattle-13,000 1-year old cattle-7,000 Newborn cattle-4,500 The company records separately the increase in fair value less costs to sell due to physical change and due to price change. How much is the change in fair value less costs to sell due to price change?

A group of thirty 2-year old cattle was held at January 1, 2021. On this same date, additional five 2-year old cows were purchased at P12,500 each and five healthy calves were born. No cows or calves were sold during the year. Per unit fair values less costs to sell were as follows: January 1, 2021 2-year old cattle-12,500 Newborn cattle-4,000 December 31, 2021: 3-year old cattle-15,000 2-year old cattle-13,000 1-year old cattle-7,000 Newborn cattle-4,500 The company records separately the increase in fair value less costs to sell due to physical change and due to price change. How much is the change in fair value less costs to sell due to price change?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6MC

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Question

19.A group of thirty 2-year old cattle was held at January 1, 2021. On this same date, additional five 2-year old cows were purchased at P12,500 each and five healthy calves were born. No cows or calves were sold during the year. Per unit fair values less costs to sell were as follows:

January 1, 2021
2-year old cattle-12,500
Newborn cattle-4,000

December 31, 2021:
3-year old cattle-15,000
2-year old cattle-13,000
1-year old cattle-7,000
Newborn cattle-4,500

The company records separately the increase in fair value less costs to sell due to physical change and due to price change.

How much is the change in fair value less costs to sell due to price change?

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