Cowboy's Milk produces milk to sell to local and national ice cream producers. Cowboy's Milk began operations on January 1, 2015 by purchasing 840 milk cows for $1,176,000. The company controller had the following information available at year end relating to the cows: Milking cows Carrying value, January1, 2015 Change in fair value due to growth and price changes Decrease in fair value due to harvest $1,176,000 $365,000 ($42,000) $54,000 Milk harvested during 2015 1. At December 31, 2015, what is the value of the milking cows on Cowboy's Milk statement of financial position? a. 1,176,000 b. 1,134,000 c. 1,541,000 d. 1,499,000

Cowboy's Milk produces milk to sell to local and national ice cream producers. Cowboy's Milk began operations on January 1, 2015 by purchasing 840 milk cows for $1,176,000. The company controller had the following information available at year end relating to the cows: Milking cows Carrying value, January1, 2015 Change in fair value due to growth and price changes Decrease in fair value due to harvest $1,176,000 $365,000 ($42,000) $54,000 Milk harvested during 2015 1. At December 31, 2015, what is the value of the milking cows on Cowboy's Milk statement of financial position? a. 1,176,000 b. 1,134,000 c. 1,541,000 d. 1,499,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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