1. Biological assets are living animals and living plants.

A bearer plant is a living plant that is used in the

production or supply of agricultural produce. And is expected to bear produce for more than one period,
and has a remote likelihood of being sold as agricultural produce, except for incidental scrap sales.
Agricultural produce is the harvested product of a biological asset.

2. A component of a company's financial information is classified as held for sale if the carrying amount
will be recovered principally through a sale transaction rather than a continuing use. In the case of the
given situation, the PPE is now available for immediate sale, as it is offered for sale and the sale is highly
probable since a buyer has been identified.
Aside from the technical argument that it is required by the standard, income on discontinued operations
should be presented separately on the company's income statement for the investors and other
stakeholders to distinguish the income of the company from continuing operations and those that already
from ceased operations.

3. The benefits that a company derived from providing additional post- employment benefits to its
employees are: A solid benefit can improve motivation of employees which will result to their increase
loyalty and productivity and this benefit can help you differentiate your business from competitors.
Lastly, it will give the company tax savings since the employer's contribution is a tax-deductible amount.

4. The better option would be the lease with a purchase option because it will give the company a time to
revive its financial situation so that it can have approved bank loans. The company will also not lose the
property while it is waiting for its financial requirements, it gives opportunity to purchase the property
when its financial situation became stable and after the leased is completed. So, choosing purchase option
has a great privilege rather than to move again.

5. In direct financing lease accounting, income is recognized over time as payments come in. On the
other hand, the sales type lease, part of the income is accounted during inception of the lease and the
remainder is accounted for over the lease term. Therefore, there could be more revenue recognized in
sales type lease upon inception, while in direct financing recognizes no revenue upon inception but
catches up as the lease progresses.

6. Lease liability is calculated using all the lease payments not paid at the commencement date discounted
by the interest rate implicit in the lease or incremental borrowing rate. The right of use asset is calculated
using the initial amount of the lease liability, plus any lease payments made to the lessor before the lease
commencement date, plus any initial direct costs incurred, minus any lease incentives received. The lease
liability is part of the computation, and in fact the starting point in the computation of right of use asset.
7. Direct financing lease and sales type lease are both considered capital leases, meaning the lessor
finances the leased asset but all the rights to ownership transfer to the lessee. While, the difference
between these two financing lease types relates to the profit on sale. In a sales lease type profit recognize
immediately, while in direct financing lease the profit is deferred and recognized over the life of the lease.

8. Aside from the fact that someone who pays taxes helps the government perform its functions by
providing funds, it could also be used in applications where an income tax return is needed such as credit
card and bank loans. The good record of a taxpayer could also affect his/her standing in terms of credit
and other opportunities.
9. The deferred tax assets reduces the amount of tax owned of the year, while deferred liability increases
the current year income tax expense.

10. A counterbalancing error has occurred when an error is made that cancels out another error. Hence, If
the current year books are closed-no entry is necessary if the error has already counterbalanced. If the
error has not counterbalanced then an entry must be made to retained earnings then, If the books are not
closed for the current year, the company is in the second year, and the error hasn’t already
counterbalanced then it is necessary to correct the current period and adjusted beginning retained
earnings. While, Non-counterbalancing errors are those that will not be automatically offset in the next
accounting period. It makes no difference whether the books are closed or still open, a correcting journal
entry is necessary.