The Dairy Farm plc manages a flock of sheep. On 30 June 20X2, 100 sheep were born, all of which were still owned by the Dairy Farm plc at 31 December 20X2. The estimated sale price of the sheep is obtained from market data, which is as follows: Fair value (per animal) £ Newborn at 30 June 20X2 20 Newborn at 31 December 20X2 21 6-month old at 30 June 20X2 23 6-month old at 31 December 20X2 24 Costs to sell the sheep of any age are estimated at 1.5% of the transaction price. What is the fair value gain recognised in respect of the 200 sheep in the Dairy Farm plc's financial statements for the year to 31 December 20X2 according to IAS 41? a. £2,364 b. £2,304 c. £2,167 d. £1,970 e. £2,300 f. £2,400
The Dairy Farm plc manages a flock of sheep. On 30 June 20X2, 100 sheep were born, all of which were still owned by the Dairy Farm plc at 31 December 20X2. The estimated sale price of the sheep is obtained from market data, which is as follows: Fair value (per animal) £ Newborn at 30 June 20X2 20 Newborn at 31 December 20X2 21 6-month old at 30 June 20X2 23 6-month old at 31 December 20X2 24 Costs to sell the sheep of any age are estimated at 1.5% of the transaction price. What is the fair value gain recognised in respect of the 200 sheep in the Dairy Farm plc's financial statements for the year to 31 December 20X2 according to IAS 41? a. £2,364 b. £2,304 c. £2,167 d. £1,970 e. £2,300 f. £2,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The Dairy Farm plc manages a flock of sheep.
On 30 June 20X2, 100 sheep were born, all of which were still owned by the Dairy Farm plc at 31 December 20X2.
The estimated sale price of the sheep is obtained from market data, which is as follows:
|
|
Fair value (per animal) £ |
|
Newborn at 30 June 20X2 |
20 |
|
Newborn at 31 December 20X2 |
21 |
|
6-month old at 30 June 20X2 |
23 |
|
6-month old at 31 December 20X2 |
24 |
Costs to sell the sheep of any age are estimated at 1.5% of the transaction price.
What is the fair value gain recognised in respect of the 200 sheep in the Dairy Farm plc's financial statements for the year to 31 December 20X2 according to IAS 41?
a. £2,364
b. £2,304
c. £2,167
d. £1,970
e. £2,300
f. £2,400
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 1 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education