Use the following information for the next three questions. HANNAH Company has a herd of 10 2-year old animals on January 1, 2018. One animal aged 2.5 years was purchased on July 1, 2018 for PI08, and one animal was born on July 1, 2018. No animals were sold or disposed of during the year. The fair value less to sell per unit is as follows: 2- year old animal on January I 1.5 - year old animal on July 1 New born animal on July 1 2- year old animal on December 31 2.5 - year old animal on December 31 Newborn animal on December 31 2- year old animal on December 31 0.5 - year old animal on December 31 100 108 70 105 111 72 120 80

Use the following information for the next three questions. HANNAH Company has a herd of 10 2-year old animals on January 1, 2018. One animal aged 2.5 years was purchased on July 1, 2018 for PI08, and one animal was born on July 1, 2018. No animals were sold or disposed of during the year. The fair value less to sell per unit is as follows: 2- year old animal on January I 1.5 - year old animal on July 1 New born animal on July 1 2- year old animal on December 31 2.5 - year old animal on December 31 Newborn animal on December 31 2- year old animal on December 31 0.5 - year old animal on December 31 100 108 70 105 111 72 120 80

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 89P

See similar textbooks

Similar questions

1. Mr. Klaus Company has a herd of 10 2-year old animals on January 1, 2018. One animal aged 2.5 years was purchased on July 1, 2018 for P108, and one animal was born on July 1, 2018. No animals were sold or disposed of during the year. The fair value less cost to sell per unit as follows: 2- year old animal on January 1 100 108 2.5 - year old animal on July 1 New born animal on July 1 2-year old animal on December 31 2.5 - year old animal on December 31 70 105 111 New born animal on December 31 72 3- year old animal on December 31 120 0.5 – year old animal on December 31 80 What is the fair value of the biological assets on December 31, 2018?
Cake Company has a herd of ten 2-year old animals on January 1, 2023. One animal aged 2.5 years was purchased on July 1, 2023 for P10,000 and one animal was born on July 1, 2023 No animals were sold or disposed during the year. The fair value less cost to sell per unit were: Newborn animal, July 1-P7,000 Newborn animal, December 31+ P7,200 0.5-year old animal, December 31-P8,000 2-year old animal, January 1-P10,000 2-year old animal, December 31-P10,500 2.5-year old animal, July 1-P10,800 25-year old animal, December 31-P11,100 3-year old animal, December 31-P12,000 The gain arising from change in fair value less cost to sell reported in the 2023 profit or loss is:
Cake Company has a herd of ten 2-year old animals on January 1, 2023. One animal aged 2.5 years was purchased on July 1, 2023 for P10,000 and one animal was born on July 1, 2023. No animals were sold or disposed during the year. The fair value less cost to sell per unit were: Newborn animal, July 1-P7,000 Newborn animal, December 31-P7,200 0.5-year old animal, December 31-P8,000 2-year old animal, January 1-P10,000 2-year old animal, December 31-P10,500 2.5-year old animal, July 1-P10,800 2.5-year old animal, December 31-P11,100 3-year old animal, December 31-P12,000 The December 31, 2023 statement of financial position should report biological assets of:
Honey Company has a herd of 102-year old animals on January 1, 2016. One animal aged 25 years was purchased on July 1 , 2016 for P108 , and two animal was born on December 31, 2016 No animal were sold or disposed of during the year. The fair value less cost of disposal per unit is as follows: 100 108 70 105 2-year old animal on January 1 25-year old animal on July 1 New born animal on July 1 2-year old animal on December 31 2.5-year old animal on December 31 Newborn animal on December 31 3-year old animal on December 31 0.5-year old animal on December 31 ary 111 72 120 80 What is the total amount to be presented in 2016 Statement of Comprehensive Income?
On December 30, 2021, the Green Pasteur Farms slaughtered cows with fair value of P 400,000. Estimated cost to sell of P 20,000 includes transportation cost of P 3,000 to bring the cows to slaughter house, and another transportation cost of P 2.000 to bring the carcasses to the market. At year-end, no meat had been sold but its fair value on this date is P 410,000 while its net realizable value is P 405.000. What amount should the agricultural produce be recorded on December 30, 2021? a. P 383,000 b. P 382,000 c. P400,000 d. P 385,000
A herd of 5 four year old animals was held on 1 January 2007. on 1 July 2007, a 4 1/2 year old animal was purchased. the fair values less cost to sell were follows: 4 year old animal at 1 January 2007 200 4 1/2 year old animal at 1 July 2007 212 5 year old animal at 31 December 2007 230 How much is the gain to be recognized from the change in fair value less costs to sell in 2007? a. 168 b. 172 c. 184 d. none of these
On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 years old for a total cost of P1,350,000. On December 31, the cows gave birth to 15 calves. The following information on fair value less cost of disposal of biological assets is made available: (Refer to image) What amount of gain from biological assets will KAW Inc. report in its December 31 Income Statement? 2.5 year old cow on deceber 31 20,000 3 years old cow on december 31 25,000 new born calf on july 1 5,000 new born calf on december 31 6,500
A herd of 50, 1-year old and 50, 2-year old animals were held by Icor Companyat January 1, 2015. The company also purchased 20 animals aged 1.5 and 20 animals aged 2.5 onJuly 1, 2015.the following are the fair value of the biological assets:Age of animals Jan. 1, 2015 July 1, 2015 Dec. 31, 20151.0-year old P 2,500 P 3,000 P 3,5001.5 year old 3,750 4,500 5,2502.0-year old 5,000 6,000 7,0002.5-year old 6,250 7,500 8,7503.0-year old 7,500 9,000 10,5000.0-year old 1,000 1,2000.5-year old 2,000 20 Animals were born on July 1, 2015. 17. How much of the increase in the fair value of the biological assets due to price change?18. How much the increase in the fair value of the biological assets due to physical change?19. What is the fair value of the biological assets as of December 31, 2015?
On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 years old for a total cost of P1,350,000. On December 31, the cows gave birth to 15 calves. The following information on fair value less cost of disposal of biological assets is made available: (Refer to image) What amount of gain from biological assets will KAW Inc. report in its December 31 Income Statement? * 2.5 years old cow on December 31 20,000 3 years old cow on December 31 Newborn calf on July 1 25,000 5,000 Newborn calf on December 31 6,500
Please
Salty Frozen Yogurt purchases a new refrigeration system for $100,000 on 1/1/21. Salty pays an initial deposit of $40,000 on 1/1/21. They will pay the remaining $60,000 by making equal- sized payments at the end of each year for three years - $20,000 on 12/31/21, $20,000 on 12/31/22 and $20,000 on 12/31/23. If Şalty's borrowing costs are 8%, they should debit the PP&E account for on 1/1/21.
Tasty Tongue Pizza bought a used Nissan delivery van on January 2, 20X6, for $19,000. The van was expected to remain in service for four years (36,000 miles). At the end of its useful life, Tasty Tongue's officials estimated that the van's residual value would be $2,800. The van traveled 11,000 miles the first year, 13,000 miles the second year, 5,000 miles the third year, and 7,000 miles in the fourth year. Requirements 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. 2. Which method best tracks the wear and tear on the van? 3. Which method would Tasty Tongue prefer to use for income tax purposes? Explain in detail why Tasty Tongue prefers this method. Requirement 1. Prepare a schedule of depreciation expense per year for the van under the three depreciation methods. (For units-of-production and double-declining-balance, round to the nearest two decimals after each step of the calculation. For years with $0 depreciation, make…