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On December 31, 2020, Stars Company reported the following information involving its biological assets: Biological assets, at cost on December 31, 2018 P6,000,000 Fair value surplus on initial recognition at fair value December 31, 2019 7.000.000 Change in fair value to December 31, 2020 1,000,000 Decrease in fair value due to harvest during 2020 900,000 What amount of net gain should Stars Company report in its December 31, 2020 income statement related to the biological assets?

On December 31, 2020, Stars Company reported the following information involving its biological assets: Biological assets, at cost on December 31, 2018 P6,000,000 Fair value surplus on initial recognition at fair value December 31, 2019 7.000.000 Change in fair value to December 31, 2020 1,000,000 Decrease in fair value due to harvest during 2020 900,000 What amount of net gain should Stars Company report in its December 31, 2020 income statement related to the biological assets?

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
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On December 31, 2020, Stars Company reported the following information involving its biological assets: Biological assets, at cost on December 31, 2018 P 6,000,000 Fair value surplus on initial recognition at fair value December 31, 2019 7,000,000 Change in fair value to December 31, 2020 1,000,000 Decrease in fair value due to harvest during 2020 900,000 What amount of net gain should Stars Company report in its December 31, 2020 income statement related to the biological assets?
Transcribed Image Text:On December 31, 2020, Stars Company reported the following information involving its biological assets: Biological assets, at cost on December 31, 2018 P 6,000,000 Fair value surplus on initial recognition at fair value December 31, 2019 7,000,000 Change in fair value to December 31, 2020 1,000,000 Decrease in fair value due to harvest during 2020 900,000 What amount of net gain should Stars Company report in its December 31, 2020 income statement related to the biological assets?
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