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 100.000 B. P 2,000,000 C. P 2,100,000 D. P 2,200,000
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 100.000 B. P 2,000,000 C. P 2,100,000 D. P 2,200,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 100.000
B. P 2,000,000
C. P 2,100,000
D. P 2,200,000
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