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    Aeecd4ce 1592190070352 PDF

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    cyken
    Honey Company had a herd of 11 animals on December 31, 2014. The fair value of the biological assets on December 31, 2014 was $1,400. The gain from change in fair value of biological assets that should be recognized in 2014 is $292. The gain from change in fair value due to price change is $55.

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    Aeecd4ce 1592190070352 PDF

    Uploaded by

    cyken
    136 views2 pages
    Honey Company had a herd of 11 animals on December 31, 2014. The fair value of the biological assets on December 31, 2014 was $1,400. The gain from change in fair value of biological assets that should be recognized in 2014 is $292. The gain from change in fair value due to price change is $55.

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    9bd8cf4124173c95d243836b06510958aeecd4ce_1592190070352___Copy.pdf - Copy (3)

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    Honey Company had a herd of 11 animals on December 31, 2014. The fair value of the biological assets on December 31, 2014 was $1,400. The gain from change in fair value of biological assets that should be recognized in 2014 is $292. The gain from change in fair value due to price change is $55.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    136 views2 pages

    Aeecd4ce 1592190070352 PDF

    Uploaded by

    cyken
    Honey Company had a herd of 11 animals on December 31, 2014. The fair value of the biological assets on December 31, 2014 was $1,400. The gain from change in fair value of biological assets that should be recognized in 2014 is $292. The gain from change in fair value due to price change is $55.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Honey Company has a herd of 10 2-year old animals on January 1, 2014. One animal aged 2.

    5 years was purchased


    on July 1,2014 for PI08, and one animal was born on July 1, 2014. No animals were sold or disposed of during the
    year. The fair value less cost of disposal per unit is as follows:
    2 - year old animal on January 1 100
    2.5-year old animal on July 1 108
    New born animal on July 1 70
    2 - year old animal on December 31 105
    2.5 - year old animal on December 31 111
    Newborn animal on December 31 72
    3 - year old animal on December 31 120
    0.5 - year old animal on December 31 80

    i. What is the fair value of the biological assets on December 31, 2014?
    A. 1,320 C. 1,400
    B. 1,360 D. 1,440

    m
    er as
    ii. What is the gain from change in fair value of biological assets that should be recognized in 2014?
    A. 222 C. 300

    co
    B. 292 D. 332

    eH w
    o.
    iii. What is the gain from change in fair value due to price change?
    A. 55
    rs e C. 237
    ou urc
    B. 222 D. 292
    o

    i. Answer is (C).
    aC s

    Fair value of 3-year old animals on Dec. 31 (11 x P120) 1,320


    vi y re

    Fair value of 0.5-year old animal on Dec. 31, the newborn (1 x P80) 80
    Total fair value - December 31,2014 1,400

    ii. Answer is (B).


    ed d

    Fair value of 10 animals on January 1 (10 x P100) 1,000


    ar stu

    Acquisition cost of one animal on July 1 108


    Total carrying amount of biological assets - December 31 1,108
    Fair value on December 31,2014 1,400
    Carrying amount 1,108
    sh is

    Gain from change in fair value 292


    Th

    iii. Answer is (A).


    Gain from change in fair value due to price change:
    10 2-year old animals (105-100 = 5x10) 50
    1 2.5-year old animal (111-108 = 3 x 1) 3
    1 newborn on July 1 (72 - 70 = 2 x 1) 2
    Total 55

    Gain from change in fair value due to physical change:


    10 3-year old animals acquired 1/1/2014 (120-105 = 15 x 10) 150
    1 3-year old animal acquired 7/1/2014 (120-111 = 9 x 1) 9
    1 0.5-year old born on 7/1/2014 (80-72 = 8 x 1) 8
    1 newborn (70 x 1) 70

    https://www.coursehero.com/file/64749084/9bd8cf4124173c95d243836b06510958aeecd4ce-1592190070352-Copypdf/
    Total 237
    Price change 55
    Physical change 237
    Total gain from change in fair value 292

    m
    er as
    co
    eH w
    o.
    rs e
    ou urc
    o
    aC s
    vi y re
    ed d
    ar stu
    sh is
    Th

    https://www.coursehero.com/file/64749084/9bd8cf4124173c95d243836b06510958aeecd4ce-1592190070352-Copypdf/

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