WeCareCows Company produces dairy products for sale to grocery stores and direct consumers. When they started their operations, they bought 650 milk cows for P8,000,000. The following information are provided during the year: • Acquisition cost, January 1- P8,000,000 • Change in fair value due to growth and price changes- P2,500,000 • Decrease in fair value due to harvest- P250,000 • Milk harvested during the year but not yet sold- P400,000 What amount of gain on change in fair value should be recognized for biological assets for the year?
WeCareCows Company produces dairy products for sale to grocery stores and direct consumers. When they started their operations, they bought 650 milk cows for P8,000,000. The following information are provided during the year: • Acquisition cost, January 1- P8,000,000 • Change in fair value due to growth and price changes- P2,500,000 • Decrease in fair value due to harvest- P250,000 • Milk harvested during the year but not yet sold- P400,000 What amount of gain on change in fair value should be recognized for biological assets for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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WeCareCows Company produces dairy products for sale to grocery stores and direct consumers. When they started their operations, they bought 650 milk cows for P8,000,000. The following information are provided during the year: • Acquisition cost, January 1- P8,000,000 • Change in fair value due to growth and price changes- P2,500,000 • Decrease in fair value due to harvest- P250,000 • Milk harvested during the year but not yet sold- P400,000 What amount of gain on change in fair value should be recognized for biological assets for the year?
A. P2,650,000
B. P2,900,000
C. P2,500,000
D. P2,250,000
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