2A6

2A6
Intermediate Accounting 3 (CA51016)

Reviewer for Biological Assets
THEORIES
1. ADALEM Daphne Corinne E.
- Which of the following is not a biological asset that is accounted for
under PAS 41 Agriculture?
a. Animals that are being grown to be butchered for their meat
b. Animals held to produce milk
c. Plants grown to produce fruit over a long period of time
d. Annual crops
2. ALVAREZ Karylle Kristine F.

- Agricultural produce should be measured at carrying value less costs of
disposal at the point of harvest.
- False
3. AQUINO Denzel P.
- Agricultural produce is the harvested product of the entity’s biological
assets.
- True
4. AUSTRIA Lorena Isabela E.

- Trees that are grown for use as lumber is an example of a not bearer
plant and are classified as biological assets.
- True
5. BAUTISTA Erin Ashley C.

- Statement 1: The harvested products of the entity’s biological assets are
referred to as agricultural harvest.
Statement 2: Agricultural produce is measured at fair value less costs to
sell at the point of harvest.
- Statement 1: False, Statement 2: True
6. BRAGO Maria Lourdes F

- A detachment of a produce from a biological asset such as getting milk
from a cow is called a cessation.
- False
7. CALICDAN Miguel Jose G.

- Everything coming out of agriculture is a biological asset
- False
8. CARUZ Xeanne Myrrh Q.

- IAS 41 Agriculture applies to agricultural produce after harvest.
- False
9. CASTILLO Aira Jen R.

- If a government grant related to a biological asset measured at fair
value less to cost to sell is conditional, the grant shall be recognized as
income only when the conditions attaching to the grant are met.
- True
10. CRUZ Christiana Monique Q.

- After harvest, the agricultural produce should be classified as
a. PPE
b. Intangible Assets
c. Biological Assets
d. Inventories
11. DAROYA Kaleena R.

- A gain or loss may arise on initial recognition of agricultural produce as
a result of harvesting.
- True
-
12. DEL PILAR Cristine Gail E.
- The costs to sell of biological assets and agricultural produce include all
of the following, except:
a. Transport costs
b. Commission to brokers and dealers
c. Levies by regulatory agencies
d. Transfer taxes and duties
*Note: It is always presumed that the FV of an agricultural produce can be determined

reliably. Likewise, the FV is determined at the point of harvest. Hence, the cost to sell does
not include transportation costs to get the asset to another location because presumably the
FV at the that location is likely to change.
13. DIAZ Alyssa Nicole D

- Statement 1: An agricultural produce at the point of harvest shall be
recognized at fair value less estimated cost to sell.
Statement 2: Point-of-sale costs exclude any levies by regulatory

authorities and commodity exchanges.
- Statement 1: True, Statement 2: False
14. DIEGO Althea Rose M.

- Upon the purchase of a biological asset, gain or loss may arise on its
initial recognition because the fair value less cost to sell may be higher
or lower than the total purchase price of the said asset.
- True
15. DIMAKUTA Abdul Monib Jr. I.

- A gain or loss that arises on the initial recognition of a biological asset
and from a change in fair value less cost of disposal of a biological asset
shall be included in
A. Profit or loss for the period

B. Other comprehensive income
C. A separate revaluation reserve
D. An appropriation reserve
16. DIMARANAN Adrian C

- DAMUHAN Farms had a newborn cow classified as a biological asset. At
what amount should the entity recognize in its profit or loss pertinent
to the information stated?
a. Cash paid
b. Fair Value less cost to sell
c. No recognition of gain or loss
d. Difference between A and B
17. DIMAUNAHAN Gabrielle Diane A.
- A biological asset is measured initially at fair value less estimated cost
to sell including finance cost and income taxes.
- False
18. DINGAL Mildred Angela T.

- According to IAS 41, disclosure on the aggregate gain or loss arising
during the current period on initial recognition of biological assets is not
required.
- False
19. DIZON Catthlynn Jhune I.

- There may be a loss on initial recognition because costs to sell are
deducted in determining the biological asset’s fair value less costs to
sell.
- True
20. DUKA Keisha Angelika D.

- When fair value is not directly observable, the following may be
considered except
a. Prices for similar assets before adjustments
b. Any benchmark within the sector
c. The most recent market transaction price
d. None of the above
21. DULCE Kyla Patricia G.

- When market-determined prices are not available, the present value of
the expected net cash flows from the asset discounted at currently
determined after-tax rate may be used.
- False
22. ECO, Ma. Ingrid Isabelle L.

- TWICE Milling produces and mills rice corn for sale in the market.
On December 31, 2019, TWICE provided the following information
regarding its rice plantation: Corn plants, P500,000; harvested corn
fruits P300,000; freestanding trees, P100,000; land P3,000,000. What
amount of biological assets shall TWICE present in its December 31,
2019 Statement of Financial Position?
a. 900,000
b. 500,000
c. 800,000
d. 600,000
23. ESTRELLA Genesis L.

- Biological Assets are measured in the statement of financial position at
a. Fair value
b. Purchase price plus transaction cost
c. Fair value less estimated cost to sell
d. Cost to sell less accumulated depreciation and accumulated
impairment losses
24. FLORESCA Mariya Averyl D.

- Biological assets that are not expected to be disposed of within one
year from the end of the reporting period are presented in the
statement of financial position under non-current assets.
- True
25. JIMENEZ Philip John L.
- When fair value is not reliably determinable for a biological asset, and
when alternative estimates of fair value are determined to be clearly
unreliable, the biological asset is measured at the SFP at cost less
accumulated depreciation and accumulated impairment loss.
- True
26. JOVELLANOS Vincent

- A gain may arise on initial recognition of a biological asset, such as
when a calf is born.
- True
27. LASATEN Ceska Andre F.

- What is the incorrect term/phrase used in the statement below?
Resulting from the fair value changes of biological assets, Unrealized
Gains or Losses shall be presented in a separate line on the
Statement of Comprehensive Income.
a. “Shall be presented”
b. “Separate line”
c. “Statement of Comprehensive Income”
d. None of the above.
28. LOPEZ Joshua M.

- A gain or loss arising on the initial recognition of a biological asset and
from a change in the fair value less costs to sell of a biological asset
shall be included in?
a. Other comprehensive income
b. Equity
c. Profit or loss for the period
d. A separate revaluation, reserve
29. MALABANAN Cristine Yvette I.

- IAS 41 encourages separate disclosures of change in fair value less costs
to sell due to:
a. Physical Change
b. Price Change
c. Both a and b
d. None of the above
30. MALACAS Fersie Ann M.

- A gain or loss arising from an initial recognition of an agricultural
produce at fair value less cost to sell shall be included in the other
comprehensive income for the period which it arises.
- FALSE
31. MARINAS Nicole L.

- Statement 1: Any change in the biological assets’ fair market value less
costs to sell is taken to profit or loss. Statement 2: IAS 41 does not
encourage separate disclosures of fair value less costs to sell due to
price change and due to physical change.
- Statement 1 is true, statement 2 is false
32. MATEO Pamela Erika G.

- A change in the fair value of a biological asset due to harvesting is a
physical change.
- True
33. MONDING Jojirose Anne B.
- Cost cannot approximate fair value. And whenever there is a gain or
loss arising on initial recognition of agricultural produce at fair value
less cost to sell, it shall be included in the surplus or deficit for the
period when it arises.
- Statement 1 is false; statement 2 is true
34. NATONTON Richelle Marie C.

- Biological transformation results in a number of types of physical
change — growth, degeneration, production, and procreation, each of
which is observable and measurable. Which of the following physical
changes refers to an increase in quantity or improvement in quality of
the biological asset?
a. Growth
b. Degeneration
c. Production
d. Procreation
35. NAZAL Airon Noelle C.

- In cases where there is an existing contract, the recognition of the
Biological asset should be adjusted to it’s contract price. True or False?
- False. The fair value of an asset is not adjusted by a price of an
existing contract or any contract to sell at a future date.
36. ORADA Trisha Marie R.

- The fair value of biological assets can change only due to physical
changes of the asset.
- False. Fair values can change both due to physical and price
changes of the biological asset.
37. ORFANEL Marc Geoffrey C.

- An entity shall follow IAS 41 , Agriculture when the agriculture produce
is held for sale in the ordinary course of the business.
- False. After harvest, the agricultural produce, which is classified
as inventory, shall be measured with IAS 2 Inventories.
38. PARANADA Hans Jefferson L.

- The measurement of biological assets involved in agricultural activities
should be based on
a. Net realizable value
b. Historical cost
c. Fair value approach
d. Replacement cost
39. PENA Alexsandrea Gaebryle

- What is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at a measurement date?
- Fair value.
40. PERALTA Cheene A.

- The price of a newborn sheep on January 1 is different from the price of
a newborn sheep on December 31. This change in FV is due to a price
change.
- True
41. PEREZ Cristian P.

- In accordance with IAS 41, no gain or loss shall be recognized in Profit or
Loss when there is a change in fair value due to price change.
- False
42. QUERIJERO Giancarlo C.

- The change in fair value due to price change is the increase or decrease
in the price of the biological asset having the same characteristics at
two different periods.
- True
43. REYES Aquila Kate N.

- A gain or loss arising on initial recognition of a biological asset at fair
value less costs to sell and from a change in fair value less costs to sell
of a biological asset shall be included in the other comprehensive
income for the period in which it arises. (True or False)
- False
44. SABATEN Hannah Hilary R.

- The amount included in the gross income is the higher between the
change in fair value less cost to sell due to price change and the change
in fair value less cost to sell due to physical change. (True / False)
- False
45. SIOSON Patricia Dine D.

- Which of the following forms part of the gross income of biological assets?
a. Gain arising from change in Fair value
b. Changes in fair value less cost to sell of biological assets
c. Both a and b
d. Neither a nor b
46. SIQUIAN Isidro Carmelo L.

- An entity had a plantation forest that is likely to be harvested and sold
in 30 years. The income shall be accounted for in which of the
following? (MC)
a. No income shall be reported annually until first harvest and sale
in 30 years
b. Income shall be measured annually and reported using a fair
value approach that recognizes and measures biological growth.
c. The eventual sale proceeds shall be estimated and matched to
the profit and loss account over the 30 years period
d. The plantation forest shall be valued every 5 years and the
increase in value shall be recognized as a component of other
comprehensive income.
47. TALACTAC Ayame V.

- Gross Income of the entity shall be taken to Profit or Loss. (True/False)
- True
48. TAMIO John Paolo C.

- An entity shall disclose the aggregate gain or loss arising during the
current period on initial recognition of biological assets and agricultural
produce and from the change in fair value less costs to sell of biological
assets.
- True
49. TOLENTINO Corine Abigail A.

-
50. VENTURINA Faith Lynn L.

- The total selling price less cost to sell of livestock sold during the period
must be taken into consideration in computing for the gross income of
biological assets. (True or False)
- False
PROBLEMS
1. ADALEM Daphne Corinne E.
- ABC Company provided the following assets in a forest plantation and
farm:
Freestanding trees 9,000,000
Land under trees 750,000
Animals related to recreational activities 3,100,000
Bearer plants 2,500,000
Bearer animals 2,650,000
Agricultural produce growing on bearer plants 775,000
Agricultural produce harvested 1,867,000
What total amount should be reported as biological assets?
Answer: 12,425,000
Solution:
Freestanding trees 9,000,000
Bearer animals 2,650,000
Agricultural produce growing on bearer plants 775,000
Total Biological Assets 12,425,000
2. ALVAREZ Karylle Kristine F.

- Consunji Farms harvested strawberries with a fair value of P400,000 at
the date of harvest. Estimated cost to sell is P9,000. At year end, the fair
value declined to P350,000 and no strawberries were sold at year-end.
On January 30, 2021, all of the strawberries were sold for P380,000 and
the company incurred a selling cost of P8,500. At the amount shall the
harvested strawberries be initially recognized?
Answer: P391,000
Solution:
Fair value P400,000
Estimated cost to sell (9,000)
Initial value P391,000
3. AQUINO Denzel P.
- Fortitude Company sold some of their biological assets to Graham (FV),
P200,000 with an estimated cost to sell of P6,000 on July 1, 2018. The
sale was made at Fortitude’s farm. At what amount should Graham
Company recognize the assets initially?
Answer: P194,000
Solution:
Fair value P200,000
Estimated cost to sell (6,000)
Initial value P194,000
4. AUSTRIA Lorena Isabela E.

- On January 1, 2021, Bangtan Company purchased a hectare of land
(excluding its fruits) for P5,000,000. In addition, the land has 90
mahogany trees. The information related to the trees at the date of
acquisition are as follows (per tree):
Cost - P3,750
Fair value - P5,250
Cost to sell - P750
How much is Bangtan Company’s biological assets at January 1, 2021?

- P405,000
Fair value of mahogany tree 1/1/21 5,250

Cost to sell (750)
Initial measurement per tree 4,500
4,500 x 90 = P405,000
5. BAUTISTA Erin Ashley C.

- On December 31, 2019 Woolridge Fark acquired 30 1-year old horses for
milk production at P30,000 each. The current fair value of these animals
were P32,000 each; cost to sell of P1,500 for each animal.
What is the initial recognition of the biological asset?
- Answer: P915,000
Fair Value 32,000
Cost to sell (1,500)
Initial Measurement per horse 30,500
Number of horses x 30
915,000
6. BRAGO Maria Lourdes F

- Mr. Choi Seungcheol plans to start his own farm in the Province called
SCOUPS Farm, he acquired a flock of 150 sheep for the purchase price of
Php 2,500,000. He found out that the Fair Value of 1 sheep is Php
24,000 while the cost to sell 1 sheep is Php 2,000.
Mr. Choi also paid the following for his startup of SCOUPS Farms:
- Sheep Feeds Php 750,000
- Sheep Supplements and Vitamins Php 800,000
- Salaries of farm helpers Php 400,000
How much is SCOUPS Farm Biological assets?

- Answer: Php 3,300,000
Fair Value of the Sheep Php 2,400
Less: Cost to Sell Php (200)
Initial Measurement Php 2,200 per sheep
Php 2,200x150 sheep= Php 3,300,000
*The sheep feeds, supplements and vitamins, and the salaries are
journalized as Salaries and Supplies Expense thus not part of the Biological
Assets Account.
7. CALICDAN Miguel Jose G.

At December 31, 2019, the following information was gathered for the
biological assets of MAMBA, Inc.:
-Price of the biological assets in an active market P2,500,000

Brokers’ commission 45,000
Levies by regulatory bodies 12,000
Transport and other costs of getting the asset into the market 40,000
Market prices in the previous month for similar assets 2,300,000
Interest expense on borrowed money to buy the biological asset
90,000
-At how much should the biological assets be presented in the

statement of financial position?
Answer: P 2,443,000
Price of the biological assets in an P 2,500,000

active market (45,000)
Broker’s commission (12,000)
Levies by regulatory bodies 2,443,000
8. CARUZ Xeanne Myrrh Q.

- Avery Company is a producer of coffee. The entity is considering the
valuation of harvested coffee beans. On December 31, 2016, the entity
harvested coffee beans costing P3,000,000 and with a fair value less
cost to sell of P3,500,000 at the point of harvest.
What is the measurement of the coffee beans on December 31, 2016?

Answer: 3,500,000
Solution:
December 31, 2016
Inventory 3,500,000
Gain on harvest of agricultural produce 3,500,000
To record the harvest of coffee beans to be accounted for as agricultural
produce at the point of harvest under IAS 41.
9. CASTILLO Aira Jen R.

- Maria Company owns cotton plantations, which contain a large number
of cotton plants. The cotton plants are biological assets and are
measured at fair value less costs to sell. On January 1, 2018, a
government grant of P4,000,000 for the cotton plant becomes
receivable. The grant is paid to Maria Company on the same date.
How much income from the government grant should be recognized for
the years 2018 and 2019, given that it is an unconditional grant?
Answer: Year 2018: 4,000,000 ; Year 2019: none
Solution:
Year 2018
Cash 4,000,000
Income - government grant 4,000,000
Year 2019
- no entry -
Since the grant is unconditional, income is recognized immediately in

the period the grant becomes receivable.
10. CRUZ Christiana Monique Q.

- Ferreira Company produced milk for sale to local and national ice cream
producers. The entity began operations at the beginning of current year
by purchasing 650 milk cows for 7,800,000.
The entity provided the following information for the current year:
Acquisition cost, January 01 7,800,000
Change in fair value due to growth and price changes 2,500,000
Decrease in fair value due to harvest
250,000
Milk harvested during the year but not yet sold 350,000
What amount of gain on change in fair value should be reported for

agricultural produce in the current year?
Answer: 350,000
Solution:
Inventory 350,000
Gain on agricultural produce 350,000
To record the harvest of milk to be accounted for as agricultural
produce under IAS 41.
11. DAROYA Kaleena R.

- On January 1, 2021, ABC Company planted trees on its land purchased
three years ago at a cost of P1,500,000.
The trees were considered bearer plants and had an accumulated cost
of P600,000 on December 31, 2024 and by January 1, 2025, the trees
had matured and were expected to bear produce for 8 years.
On December 31, 2026, the trees produced fruit and the fair value less
cost to sell on that date was P50,000. There was no harvest during that
year. The fruits were harvested on December 31, 2027 and the fair
value less cost to sell on that date was P80,000.
What is the amount of gain from change in fair value is recognized for
the agricultural produce for the year ended December 31, 2027?
Answer: 30,000
Solution:
Fair Value less cost of disposal - 12/31/2027 80,000
Fair Value less cost of disposal - 12/31/2026 50,000
Gain from change in fair value for 2027 30,000
12. DEL PILAR Cristine Gail E.
- On January 1, 2020, SYJ Company, purchased land (excluding its fruits)
at a cost of 7 million. In addition, the land has 100 narra trees and 80
mango trees. At the date of acquisition, a narra tree has a useful life of
20 years and a mango tree has a useful life of 10 years
-
On July 1, 2020, 50 Narra trees were cut down as timber when the FV
less cost to sell of each Narra tree was P6,000, while for each timber,
P7,000. Additionally, 2,500 kilos of mangoes were harvested when its
fair value less cost to sell is P80 per kilo.
How much is the total gain on harvest of agricultural produce at the

point of harvest?
Answer: P550,000
Solution:
Timber:
FV less cost to sell of each TIMBER at point of harvest P7,000
Multiplied by the number of Narra trees that were cut down as timber x 50 trees
Gain on harvest of agricultural produce - Timber P350,000
July 1, 2020
Inventory 350,000
Gain on harvest of agricultural produce 350,000
To record the harvest of Narra trees to be accounted for as agricultural produce at the point
of harvest under IAS 41.
Mangoes:
FV less cost to sell per kilo of Mango at point of harvest P80
Multiplied by the number of kilos of mangoes harvested x 2,500 kilos
Gain on harvest of agricultural produce - Mangoes P200,000
July 1, 2020
Inventory 200,000
Gain on harvest of agricultural produce 200,000
To record the harvest of Mango trees to be accounted for as agricultural produce at the
point of harvest under IAS 41.
Gain on harvest of agricultural produce - Timber P350,000

Gain on harvest of agricultural produce - Mangoes 200,000
Total Gain on harvest of agricultural produce P550,000
13. DIAZ Alyssa Nicole D
- At the beginning of the current year, Georgie company purchased a
vineyard costing P5,000,000 to supply local wineries around their area.
It was determined that the grape vines can produce fruit for a period of
5 years.
On October 1 of the same year, the entity harvested grapes costing

P1,000,000 with a fair value less cost to sell amounted to P1,500,000 at
the point of harvest.
On December 31, 2020, due to the growing competition in the market,

the grapes were sold for P600,000.
How much is the gain at the point of harvest? P 1,500,000
Solution:
October 1, 2020
Inventory 1,500,000
Gain on harvest of agricultural produce 1,500,000
14. DIEGO Althea Rose M.

- On December 31, 2020, LS Company purchased eight (8) cattles for
P215,000. The per unit fair value less cost to sell upon purchase
amounted to P37,500. The company also acquired five (5) additional
animals for P250,000. At the date of purchase, the fair value less cost to
sell of the five (5) animals amounted to P265,000. No animals were sold
during the period.
How much is the total gain/loss to be recorded on December 31, 2020?

Indicate whether it is a gain or loss.
Answer: P 100,000 (Gain)
Solution:
1. Acquisition of eight (8) cattles:
Fair Value less Cost to Sell: [P27,000 x 8] P300,000
Purchase Price (215,000)
Gain on Initial Recognition of Biological Assets P 85,000
2. Purchase of the additional five (5) animals:
Fair Value less Cost to Sell: P265,000
Purchase Price (250,000)
Gain on Initial Recognition of Biological Assets P 15,000
3. Total Gain on Initial Recognition of Biological Assets:
Gain on Initial Recognition [8 cattles] P 85,000
Gain on Initial Recognition [5 Additional Animals] 15,000
Total Gain/Loss on December 31, 2020 P 100,000
15. DIMAKUTA Abdul Monib Jr. I.

- The following are related to the biological assets owned by Your Lie in
April Company.
Carrying amount, January 1, 2020 700,000

Purchases 250,000
Gain arising from changes in fair value less cost to
sell attributable to physical changes 70,000
sell attributable to price changes 20,000
Sales 130,000
What amount should be recognized in 2020 profit or loss related to

these biological assets? P90,000
Gain arising from changes in fair value less costs to sell

Attributable to physical changes P70,000
sell attributable to price changes 20,000
Amount to be recognized in 2020 profit or loss P90,000
16. DIMARANAN Adrian C

- SOVA Company has a herd of 150 2-year old cows on January 1, 2020.
Fifteen (15) cows aged 2.5 years were purchased on July 1, 2020 for Php
11,000 each and ten (10) animals were born on the same date. The fair
value less cost to sell per unit are the following:
2-year old animal on January Php 10,000
2.5 year old animal on July 11,000
Newborn animal on July 8,000
At initial recognition of the assets acquired and owned during 2020,

what amount should SOVA Company recognize in its Profit/Loss?
Answer: Php 80,000
Solution:
2.5 year old animal acquired on July 1, 2020:
FV less Cost to Sell (Php 11,000 x 15) Php 165,000

Purchase Price (Php 11,000 x 15) 165,000
Gain/Loss at Initial Recognition Php 0
Newborn animal on July 1, 2020:

FV less Cost to Sell (Php 8,000 x 10) Php 80,000
Note: A newborn animal classified as a biological asset is considered

as an income at its FV less cost to sell. Hence, SOVA Company should
recognize Php 80,000 in P/L at initial recognition of the assets
acquired and owned during 2020.
17. DIMAUNAHAN Gabrielle Diane A.

- Pagudnami Corporation owns a Cattle Ranch located in Batanes. It holds
200 3-year old cows on January 1, 2021. A total of 20 cows aged 3.5
years were bought on July 1, 2021 for P20,800 each. On the same date,
20 calves were born. No cows were sold or disposed of during the year.
The fair values less cost to sell per unit were:
January 1, 2021
3-year old cow on P20,000
July 1, 2021
3.5-year old cow on 20,800
Newborn calf 14,000
December 31, 2021
3-year old cow 20,500
3.5-year old cow 21,400
Newborn calf 14,900
4-year old cow 22,000
0.5-year old calf 15,300
What is the gain/loss from change in fair value that should be reported
in 2021?
Answer: P450,000 Gain
Solution:
Initial Fair Value 12/31 Gain
200 cows held on January 1 P4,000,000 P4,400,000 P400,000

(P20,000 x 200) (P22,000 x 200)
20 cows purchased in July 1 416,000 440,000 24,000
(P20,800 x 20) (P22,000 x 20)
20 newborn calves in July 1 280,000 306,000 26,000
(P14,000 x 20) (P15,300 x 20)
Gain P450,000
18. DINGAL Mildred Angela T.

- Assume the following information from MAD Co.:
FV less point of sale cost of Biological Assets at P4,000,000
December 31, 2020
Biological Assets during 2021
Purchase Price 4,500,000
FV less point of sale cost upon purchase 4,400,000
Gain arising from change in fair value less point of

sale costs
Due to price changes 1,700,000
Due to physical changes 3,000,000
Sale of Biological Assets 4,700,000

Prepare the Journal Entry upon the purchase of the Biological Assets.
Answer:
Biological Assets 4,400,000
Loss on Initial Recognition of Biological 100,000

Assets
Cash 4,500,000
Solution:
Biological Assets (FV less point of sale upon purchase) = 4,400,000
Loss on Initial Recognition of Biological Assets

FV less point of sale upon purchase 4,400,000
Purchase Price (4,500,000)
Loss on Initial Recognition of Biological Assets 1,000,000
Cash (Purchase Price) = 4,500,000
19. DIZON Catthlynn Jhune I.

- The following data was provided by JISU Company:
Value of biological asset at acquisition cost
on December 31, 2023 980,000
Fair valuation surplus on initial recognition
at fair value on December 31, 2023 880,000
Change in fair value to December31, 2024 due
to growth and price fluctuations 250,000
Decrease in fair value due to harvest in 2024 195,000
What amount of net gain from change in the fair value of biological
assets should be reported in the 2024 income statement?
Answer: P55,000
Solution:
Change in fair value in 2024 P250,000
Decrease in fair value due to harvest in 2024 (195,000)
Net gain from change in fair value in 2024 P55,000
20. DUKA Keisha Angelika D.

- Louis Company has a herd of 12 2-year old animals on January 1, 2020.
One animal aged 2.5 years was purchased on July 1, 2020 for P108, and
one animal was born on July 1, 2020. 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 P100
2.5-year old animal on July 1 108
Newborn 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
0.5 year old animal on December 31 90
What is the fair value of the biological assets on December 31, 2020?
Answer: P1,650
Solution:
Fair value of 3-year old animals on December 31
(13 x P120) 1,560
Fair value of .05-year old animal on December 31, the newborn
(1 x P90) 90
Total fair value - December 31, 2020 1,650
21. DULCE Kyla Patricia G.

- The following information pertains to Shelby Company’s biological
assets at December 31, 2020:
Price of the assets in an active market ₱ 6,000,000
Estimated dealers’ commissions 25,000
Selling price in a binding sale agreement ₱ 6,200,000
At what amount should the biological assets be presented on Shelby

Co.’s statement of financial position?
Answer: ₱ 5,975,000
Solution:
Price of the assets in an active market ₱ 6,000,000
Less: Estimated dealers’ commissions ( 25,000)
Amount to be presented on the ₱ 5,975,000
statement of financial position
22. ECO, Ma. Ingrid Isabelle L.

- TWICE is engaged in raising dairy livestock. The entity provided the
following information during the current year. What is the carrying
amount of the Biological Asset on December 31?
Answer: P6,950,000
Carrying Amount on January 1 P5,000,000

Increase due to Purchases 2,000,000
Gain arising from change in FV less CTS 400,000
Attributable to physical change 600,000
Decrease due to sales 850,000
Decrease due to harvest 200,000
Solution:
Carrying Amount on January 1 P5,000,000
Increase due to Purchases 2,000,000
Price change 400,000
Physical change 600,000
Decrease due to sales (850,000)
Decrease due to harvest (200,000)
Carrying Amount on December 31 P6,950,000
23. ESTRELLA Genesis L.

Joan Company provided the following data:
Value of biological asset at acquisition cost on
December 31,2019 600,000

Fair value on surplus on initial recognition at fair
value on December 31, 2019 700,000
Change in fair value to December 31, 2020, due to
growth and price fluctuation 100,000
Decrease in fair value due to harvest in 2020 90,000
What is the carrying amount of the biological asset on December 31,
2020?
Answer: 1,310,000
Solution:
Acquisition cost - December 31, 2019 600,000
Increase in fair value on initial recognition 700,000
Change in fair value in 2020 100,000
Decrease in fair value due to harvest (90,000)
Carrying amount - December 31, 2020 1,310,000
24. FLORESCA Mariya Averyl D.

- At the beginning of year 2020, YG Company held 80 2-year-old animals.
On July 1, 2020, 20 0.5 year-old animals were purchased for P 7,500
each and 5 animals were born. At year-end, 5 animals were sold, aged 3
years old, at fair value.
Per unit fair values less cost to sell were as follows:
January 1, 2020
2-year-old animal P 13,000
July 1, 2020
0.5-year-old animal 7,500
Newborn animal 5,000

December 31, 2020
0.5-year-old animal 8,000
1-year-old animal 10,000
What amount shall be presented in the December 31, 2020 statement

of financial position as biological assets?
Answer: P 2,115,000
Solution:
3-year-old animals : (80-5) x P 25,000 = P 1,875,000
1-year-old animals : 20 x P 10,000 = P 200,000
0.5 year-old animals: 5 x P 8,000 = P 40,000
Biological Assets, 12/31/2020 P 2,115,000
25. JIMENEZ Philip John L.

- Given are information regarding Durock’s biological asset at Dec. 31,
2015
Assets price in an active market P20,000,000
Broker and dealers estimated
commissions 80,000
Other cost to be incurred in bringing
the assets to the market 18,000
Selling price in a binding sale agreement 20,850,000
What amount should be presented as a biological asset in the
SFP?
Solution:
Assets price in an active market P20,000,000
Broker and dealers estimated
commissions (80,000)
Biological Assets, 12/31/15 19,920,000
26. JOVELLANOS Vincent

- A public limited company, Vincent Co, produces milk on its farms. As of
January 1, 2020 Vincent has a stock of 2,050 cows (average age, 2 years
old). No animals were born or sold during the year.
The unit values less estimated cost to sell were.
2-year old animal at December 31, 2020 5,500
3-year old animal at December 31, 2020 6,000
2-year old animal at January 1, 2020 5,000
For the year 2020, what amount of gain on change in fair value will be
presented in the income statement.
Answer: P2,050,000
Solution:
3 year old animals 12/31 6,000

2 year old animals 1/1/20 (5,000)
Increase in Fair Value 1,000
Animals held x 2,050
Gain on Change in fair value 2,050,000
27. LASATEN Ceska Andre F.

- On January 1, 2020, a company named Kapekoto Co. began their
operations on producing a special type of coffee bean called Arabica,
which will then be for sale to local coffee drink manufacturers. In
starting their business, Kapekoto Co. purchased 100 Coffee Arabica
trees for a total of P10,000,000. At the end of the year, there was a
change in the fair value of the trees amounting to P4,00,000 due to its
growth and price fluctuations. Additionally, the entity had the following
information that is also related to the Arabica trees:
Decrease in fair value due to harvest 320,000

Harvested Coffee beans during 2020 (unsold) 600,000
What amount of gain on change in fair value should be presented in the

Statement of Comprehensive Income for the year 2020?
Answer: P 3,680,000
Change in fair value of the trees (12/31/2020) P 4,000,000

Decrease in fair value due to harvest
(320,000)
Net gain from biological asset P 3,680,000
28. LOPEZ Joshua M.

- 4Rest Corporation owns about one million hectare of forest land.
Biological assets (living trees) are measured at their fair value at each
balance sheet date. The fair value of biological assets is determined
based among other estimates on growth potential, harvesting, price
development and discount rate. Changes in estimates could lead to
recognition of significant fair value changes in the statement of
comprehensive income. The following relevant data are made available
involving the company’s biological assets:
Fair Value – January 1, 2021 is at P18,950,000

Fair value of acquisitions during the year – P50,000
Sales – at fair value – P400,000
Fair value of harvest during the year – P 1,300,000
Fair value, December 31, 2021 – P19,500,000
What amount of gain due to change in fair value should the company
report in its December 31, 2021 statement of comprehensive income?
Answer: P 2,200,000
Fair value, December 31, 2021 P19,500,000
Fair value of harvest during the year 1,300,000
Sales – at fair value 400,000
Fair value of acquisitions during the year ( 50,000)
Fair Value – January 1, 2021 (18,950,000)
Increase in fair value - recognized as gain P 2,200,000
29. MALABANAN Cristine Yvette I.

- White Company produced wool for sale to clothing manufacturers.
The entity began operations at the beginning of the current year by
purchasing 700 sheeps for P8,400,000.
The entity provided the following information for the current year:
Acquisition cost, January 1 P8,400,000
Change in fair value due to growth and price 1,750,000

changes
Wool harvested during the year but not yet sold 350,000
What amount of gain on change in fair value should be recognized

for biological asset in the current year?
ANSWER: P1,650,000
Solution:
Change in fair value due to growth and P1,750,000
price changes
Net gain from biological asset P1,650,000
30. MALACAS Fersie Ann M.

- Black Widow Company has a herd of 300 2.5-year old cattles on January
1, 2021. Twenty cattles aged 3 were purchased on July 1, 2021 for
P11,300 each and fifteen cattles were born on July 1, 2021. No cattles
were sold or disposed during the year.
The fair value less cost to sell per unit were listed below:
2.5-year old cattle on January P10,500
3-year old cattle on July 1 P11,300
Newborn cattle on July 1 P7,500
2.5-year old cattle on December 31 P11,000
3-year old cattle on December 31 P11,600
Newborn cattle in December 31 P7,700
What is the amount of gain or loss from the change in fair value that
should be reported in SCI for 2021?
Answer: P 369,000
Solution:
Initial Value of Cattles

300 2.5-year old cattle (1/1/21)
300 x P10,500 3,150,000
20 3-year old cattle purchased (7/1/21)
20 x P11,300 226,000
15 newborn cattle (7/1/21)
15 x P7,500 112,500
3,488,500
Fair Value of Cattles @ December 31, 2021

300 3-year old cattle
300 x 11,600 3,480,000
20 3.5-year old cattle
20 x 12,500 250,000
15 0.5-year old cattle
15 x 8,500 127,500
3,857,500
Initial Value of Cattles 3,488,500

Fair Value of Cattles @ December 31, 2021 3,857,500
Unrealized Gain 369,000
31. MARINAS Nicole L.

- United Company provided the following information related to its dairy
livestock for the current year:
Value of biological asset at acquisition cost, January 1 P800,000

Change in fair value due to price fluctuation P250,000
Decrease in fair value due to harvest P25,000
Milk harvested for the current year but not yet sold P40,000
What amount of gain on change in fair value should be recognized for

biological asset in the current year?
Answer: P225,000
Solution:
Change in fair value due to price fluctuation P250,000

Decrease in fair value due to harvest (P25,000)
Net gain from biological asset P225,000
32. MATEO Pamela Erika G.

- At the beginning of 2021, Mateo Company had a herd of twenty 1.5
year old animals. Five animals aged 2 years old, were purchased on July
1 for P25,000, and two animals were born on the same date. Seven
animals were sold on December 31, 2021, aged 2.5 years old, at fair
value.
Fair value less cost of disposal per unit

January 1, 2021
1.5 year old animal P20,000
July 1, 2021
2 year old animal 25,000
December 31, 2021
0.5 year old animal 14,500
2 year old animal 28,000
What is the amount of gain from change in fair value due to physical
change should be recognized at year end?
Answer: P283,000
Solution:
Gain from change in fair value due to physical change

20 2.5 year old (33,000-21,500)x20 P230,000
5 2.5 year old (33,000-28,000)x5 25,000
2 0.5 year old (14,500-13,500)x2 2,000
Newborn animal (13,000x2) 26,000
Total P283,000
33. MONDING Jojirose Anne B.

- A group of eight 3-year-old cow was held at Jan. 1, 2020. On this date,
three 3-year-old cattle was purchased for 17,000 each and four calves
were born. Per unit fair values less estimated cost to sell were as
follows:
January 1, 2020
3-year old P17, 000
New born cow 5, 500
December 31, 2020
4-year old 21,000

3-year old 19,000
2-year old 8,000
1-year old 7,200
Newborn cow 6,000
Question: How much shall be taken to profit or loss as a gain arising

from change in fair value due to physical change?
Answer: P48,800
CHANGE IN VALUE VALUE DUE TO PHYSICAL CHANGE:

4 year-old cow held 12/31 8 cows*(21,000-19,000)= P16,000
4 year-old cow purchased 12/31 3 cows*(21,000-19,000)= 6,000
Born on 01/01 4 cows*(7,200-6,000)= 4,800
Physical change newly born 4 cows*(5,500) 22,000
TOTAL CHANGE IN FAIR VALUE LESS COST TO SELL DUE TO PHYSICAL CHANGE P48,800
34. NATONTON Richelle Marie C.

- MOO Company produces milk on its farms located in Bulacan. The milk
produced is sold to local ice cream producers. The entity began its
operations at the beginning of 2019 by purchasing 500 milking cows
worth P3,000,000. The entity provided the following information at the
end of 2019 in relation to the milking cows:
Carrying Amount, January 1 2019 P3,000,000

Change in fair value due to growth 3,500,000
Newborn calf at year-end measured at fair value 200,000
Milk harvested during the year but not yet sold 400,000
What amount of gain on change in fair value should be recognized for

biological assets at the year-ended 2019?
Answer: P3,450,000
Solution:
Increase in fair value due to growth 3,500,000
Newborn calf at year-end at fair value 200,000
Total 3,450,000
35. NAZAL Airon Noelle C.
- On January 1, 2020 ANCN corp., a dairy and poultry business, held 10
three year-old cow , 20 4 year old goat, and 150 chickens that are
continuously bred and processed within the year. The books of ANCN
corp. showed the following data with regards to the assets:
January 1, 2020
FV less cost to sell of a 3-year-old cow 35,000
FV less cost to sell of a 4-year-old goat 12,000
FV less cost to sell of the 150 chicken 30,000
Based on the market and the report of the management, these are the
estimated Fair value less cost to sell at the end of the year for various
age groups of different kinds of animals:
December 31, 2020
FV less cost to sell of a 3-year-old cow: 38,000
FV less cost to sell of a 4-year-old cow: 46,000
FV less cost to sell of the 150 chicken 30,000
Based on the above data, how much should ANCN Corp. report as
income due to physical change?
Solution:
FV less cost to sell at December 31, 2020 of the 10 cows (4y/o)

46,000 x 10 = 460,000
FV less cost to sell at January 1, 2020 of the 10 cows (3y/o)

35,000 x 10 = (350,000)
460,000 - 350,000 = 110,000
FV less cost to sell at December 31, 2020 of the 20 goats (5y/o)

20 X 17,000 = 340,000
FV less cost to sell at December 31, 2020 of the 20 goats (4y/o)

20 x 12,000 = (240,000)
340,000 - 240,000 = 100,000
Income due to Physical Change (Cow) - 110,00
Income due to Physical Change (Goat) - 100,000
------------
Income due to Physical Change 210,000
36. ORADA Trisha Marie R.

- On January 1, 2020, JJK Company has the following cattle:
AGE QUANTITY PRICE
3 year old cattle 35 9,000
Newborn calf 25 4,000
On June 30, 2020, 12 calves were born, and JJK Company purchased an
additional five 3.5 year old cattles.
AGE PRICE
Newborn calf 4,500
3.5 year old cattles 10,000
On December 31, 2020, the per unit values less cost to sell are as
follows:
AGE PRICE
4 year-old cattle 14,000
3.5 year-old cattle 12,000
0.5 year-old cattle 7,500
Newborn calf 6,000
How much is the income from change in fair value less cost to sell due to physical change?
Answer: P183,000
Solution:
Physical Change
12 x (7,500 - 6,000) 18,000
25 x (8,000 - 6,000) 50,000
35 x (14,000 - 11,000) 105,000
5 x (14,000 - 12,000) 10,000
Total 183,000
37. ORFANEL Marc Geoffrey C.

- Fring Company has a herd of 10 2-year old goats on January 1, 2020.
One goat aged 2.5 years was purchased July 1, 2020 for P108 and one
goat was born on July 1, 2020.
No goats were sold or disposed of during the year. The fair value less
cost of disposal per unit as follows:
2-year old animal on January 1 P 100
2.5- year old animal on July 1 108
Newborn animal on July 1 70
2 year old animal on December 31 103
2.5year old animal December 31 108
Newborn animal on December 31 75
0.5- year old animal on December 31 85
What is the gain from the change in fair value due to physical change?
Answer: P262
Solution:
Fair Value of biological asset at Beginning age on remeasurement date:

10 2 years x 103 = 1030
1 2.5 years x 108 = 108
1 0 years old x 75 = 75
1213
Fair value, end

10 3 years old x 120 = 1200
1 3 years old x 120 = 120
1 0.5 year old x 85 = 85
1405
Fair value, end 1405

Fair Value of biological asset at Beginning age (1213)
Total 192
Initial measurement of the newborn 70
Physical Change 262
38. PARANADA Hans Jefferson L.
- On January 1, 2020, EFAS Company has a herd of twenty, 2-year-old
cows, five cows, aged 2.5 years old, were purchased on July 1, 2020. On
the same date, four calves were born. Ten cows were sold at December
31, 2020, aged 3 years old at fair value. Per value less cost to sell were
as follows:
Age Jan 1, 2020 Jul 1, 2020 Dec 31, 2020
3 years P54,000
2.5 years P40,000 44,000
2 years P30,000 33,000
0.5 year 18,400
Newborn 16,000 17,000
What is the gain from change in fair value due to physical change that
should be reported for 2020?
Answer: P475,600
Solution:
0.5-year animals 4 x (P18,400 – P17,000) 5,600
3-year-old animals
20 x (P54,000 – P33,000) 420,000
5 x (P54,000 – P44,000) 50,000
Total 475,600
39. PENA Alexsandrea Gaebryle

- AGCP Corporation produces milk on its farm located in Pampanga. At
December 31, 2018, the herds of cows are as follows:
4000 cows (3 year old) all purchased in prior years
2000 heifers (1.5 years old when purchased on June 30, 2018)
1000 heifers (2 years old) purchased on December 31, 2018
No animals were born or sold during the year 2019.
The unit values less estimated cost to sell of the animals were as
follows:
At December 31, 2018

1-year old P23,000
1.5-year old animals 24,000
2-year old 25,000
3-year old 30,000
At June 30, 2019

1-year old 24,000
1.5-year old 28,000
At December 31, 2019
2-year old 35,000
3-year old 36,000
4-year old 37,000
What is the change in fair value less cost to sell of the biological asset
due to price change?
Answer: P44,000,000
Price change:
3 year old cows 4,000 x (P36,000-30,000) P24,000,000
2 year old heifers 2,000 x (P35,000-25,000) 20,000,000
Increase in FV due to Price Change P44,000,000
40. PERALTA Cheene A.

- WMO Company has a group of 100 2-year-old animals on January 1,
2020. Ten animals aged 2.5 years old were purchased on July 1, 2020 for
10,800 each and ten animals were born on July 1, 2020. No animals
were sold or disposed of during the year.
The fair values less cost to sell per unit were:

2-year-old animal on January 10,000
2.5-year-old animal on July 10,800
Newborn animal on July 8,500
3-year-old animal on December 31 12,000
0.5-year-old animal on December 31 10,200
What is the gain from change in fair value that should be reported for
2020?
Answer: 229,000
Solution:
As of 1/1/20:
100 2-year-old animals (10,000 x 100) 1,000,000
As of 7/1/20:
10 2.5-year-old animals purchased (10,800 x 10) 108,000
10 newborn animals (8,500 x 10) 85,000
CA on 12/31/20:
100 3-year-old animals (12,000 x 100) 1,200,000
10 3-year-old animals purchased on July (12,000 x 10) 120,000
10 0.5-year-old animals born on July (10,200 x 10) 102,000
Initial FV, 12/31 Gain
Existing animals on 1/1 1,000,000 1,200,000 200,000
Purchased on 7/1 108,000 120,000 12,000
Newborn on 7/1 85,000 102,000 17,000
Gain from changes in FV 229,000
41. PEREZ Cristian P.

- On January 2, 2019, Stardew Co. owned a drove of 19 2-year old pigs. 7
additional piglets were born on this date as well. The company has also
decided to purchase a dozen 1-year old pigs at the same date.
The following are the per unit fair market values less estimated cost to
sell:
January 2, 2019
Newborn piglets P6,500
1-year old pigs 15,000
December 31, 2019
Newborn calves P6,450
For this period, Stardew Co. has decided to forego the usual disposal of
its biological assets.
What is the net gain/(loss) that resulted from the change in fair value
due to price change?
Answer: (P10,350) - Loss

Solution:
7 newborn piglets x [6,450 - 6,500 = (50)] (P350)
12 1-year old pigs x (15,750 - 15,000 = 750) P9000
19 2-year old pigs x [19,000 - 20,000 = (1000)] (P19,000)
Gain/(Loss) from change in FV due to price change (P10,350)
42. QUERIJERO Giancarlo C.

- Bear Brand corporation had a group of 30 2-year old cattle held on
January 1, 2020. On the same date, the company purchased 10 2-year
old cattle for P14,000 each and 15 calves were born. No cows or calves
were disposed of during the period. The per unit values less cost to sell
were:
January 1 2020
Newborn calves P5000
2-year old cattle 15,000
December 31 2020
Newborn calves 6,000
How much is the gain arising from change in fair value due to price
change?
Answer: 95,000
Solution:
December 31 2020, Gain arising from change in fair value due to price
change:
40 cattle x (17,000 - 15,000) P80,000

15 newborn calves x (6,000 - 5,000) 15,000
Gain arising from change in FV due to price change
P95,000
43. REYES Aquila Kate N.

- At the beginning of the current year, Akira Company had a herd of 15 2-
year-old lambs.
Five lambs aged 2.5 years were purchased on July 1 for P120,000 and
four lambs were born on July 1.
No lambs were sold or disposed of during the year.
Fair Value less cost of disposal per unit:
2-year-old lamb on January 1 105,000
2.5-year-old lamb on July 1 120,000
New born lamb on July 1 74,000
2-year-old lamb on December 31 110,000
2.5-year-old lamb on December 31 125,000
New born lamb on December 31 80,000
3-year-old lamb on December 31 130,000
0.5-year-old lamb on December 31 85,000
What is the gain from change in fair value due to price change?
a. P140,000
b. P129,000
c. P124,000
d. P120,000
Answer: P124,000
Solution:
Gain from change in fair value due to price change:
15 2-year-old lamb (110,000 – 105,000 = 5,000 * 15) 75,000
5 2.5-year-old lamb (125,000 – 120,000 = 5,000 * 5) 25,000
4 newborn lamb (80,000 – 74,000 = 6,000 * 4) 24,000
Total 124,000
44. SABATEN Hannah Hilary R.

- On January 1, 2020, the Farmville co. held a group of 15 2-year-old pigs.
On the same date, 3 1-year-old pigs were purchased for 15,000 each.
Per unit fair values less cost to sell were as follows:
January 1, 2016
1 year old pig P15,000
2-year-old pig 20,000
December 31, 2016
1 year old pig 16,000
How much gross income shall be reported on the company’s profit or

loss for the year ended December 31, 2020?
Answer: P96,000
Solution:
Price change:
1-Year-Old pigs
3*(16,000-15,000) 3,000
2-Year-Old pigs
15* (22,000-20,000) 30,000
Increase in FV less estimated cost to sell 33,000
Physical Change:
2-Year-Old pigs
3*(22,000-16,000) 18,000
3-Year-Old pigs
15* (25,000-22,000) 45,000
Increase in FV less estimated cost to sell 63,000
Gross Income:
Increase in FV less estimated cost to sell due to price change 30,000
Increase in FV less estimated cost to sell due to physical change 63,000
GROSS INCOME P96,000
45. SIOSON Patricia Dine D.

- The following information are taken from Miami Farms:
Carrying amount, Jan 1, 2017 P100,000
FV less cost to sell of livestock purchased during P500,000

the per
Increase in fair value less estimated cost to sell P250,000

attributable to physical changes
Increase in fair value less estimated cost to sell

P90,000
attributable to price changes
What amount shall be included in the gross income of Miami Farms as a result of
the transactions?
Answer: P340,000
Solution:
Increase in fair value less estimated cost to sell P250,000

attributable to physical changes

P90,000
attributable to price changes
Gross Income P340,000
46. SIQUIAN Isidro Carmelo L.

- COCO Co., a corn plantation company, on December 01, 2020 harvested
corn with a fair value at the date of harvest amounting to Php. 700,000.
Estimated cost to sell the corn is Php. 20,000. At year-end, no corn has
been sold and the fair value had a slight decline to Php. 660,000. On
January 13, 2021, all of the corn harvested on December 01, 2020 was
sold for Php 690,000, the company incurred Php 9,500 to sell them.
How much profit/loss did the COCO Co. realize from the sale of the corn
in 2021?
Answer: Php 31,000
Solution:
Selling Price 690,000
Less: Selling Expense (19,000)
Net proceeds from sale 671,000
Less: Inventory of Corn at year end (640,000)
Profit from the sale of the corn in 2021 31,000
47. TALACTAC Ayame V.

- Jughead Farms Company is engaged in raising dairy livestock.
Information regarding its dairy activities is found below:
Carrying value at January 1, 2020 P20,000,000
Fair value less cost to sell of biological

asset purchased 3,250,000
Increase in the fair value less estimated cost

to sell attributed to physical changes 950,000
Increase in the fair value less estimated cost

to sell attributed to price changes 1,200,000
Total selling price less cost to sell of livestock

sold during the period 3,290,000
What amount shall be included in the gross income of Jughead Farms

Company?
Answer: P2,150,000
Solution:
Increase in fair value less estimated cost to P950,000

sell attributable to physical changes
Increase in fair value less estimated cost to

1,200,000
sell attributable to price changes
AMOUNT INCLUDED IN GROSS INCOME P2,150,000
48. TAMIO John Paolo C.

- Yummylicious Dairy, a company which produces milk for ice cream
producers in the country began its operation on January 1, 2019. They
purchased 1,000 milking cows for P15,000,000.
At year-end, Yummylicious Dairy provided the following information

relating to the milking cows:
Carrying amount of milking cows, January 1 P15,000,000
Change in Fair Value due to growth and

price changes 1,200,000
Decrease in Fair Value due to harvest 300,000
Milk harvested during the year but not sold 500,000
What amount shall be included in the gross income of Yummylicious

Dairy?
Answer: 900,000
Solution:
Change in fair value due to growth and price P1,200,000

changes
AMOUNT INCLUDED IN GROSS INCOME P900,000
49. TOLENTINO Corine Abigail A.

-
50. VENTURINA Faith Lynn L.

- The following information are made available by Rain farms, of its deer
farming:
Carrying amount, Jan. 1, 2020 P540,000
Fair value less cost to sell of livestock purchased
during the period 520,000
due to physical change 320,000
due to price change 254,000
Total selling price less cost to sell of livestock sold
during the period 280,000
Using the same information given above, what amount shall be

included in gross income of Rain farms as a result of the transactions in
their deer farming?
Answer: 574,000
Solution:

due to physical change 320,000
due to price change 254,000
Gross Income P 574,000

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Intermediate Accounting 3 (CA51016)

2. ALVAREZ Karylle Kristine F.

4. AUSTRIA Lorena Isabela E.

5. BAUTISTA Erin Ashley C.

6. BRAGO Maria Lourdes F

7. CALICDAN Miguel Jose G.

8. CARUZ Xeanne Myrrh Q.

9. CASTILLO Aira Jen R.

10. CRUZ Christiana Monique Q.

11. DAROYA Kaleena R.

*Note: It is always presumed that the FV of an agricultural produce can be determined

13. DIAZ Alyssa Nicole D

Statement 2: Point-of-sale costs exclude any levies by regulatory

- Statement 1: True, Statement 2: False

14. DIEGO Althea Rose M.

15. DIMAKUTA Abdul Monib Jr. I.

A. Profit or loss for the period

16. DIMARANAN Adrian C

18. DINGAL Mildred Angela T.

19. DIZON Catthlynn Jhune I.

20. DUKA Keisha Angelika D.

21. DULCE Kyla Patricia G.

22. ECO, Ma. Ingrid Isabelle L.

23. ESTRELLA Genesis L.

24. FLORESCA Mariya Averyl D.

26. JOVELLANOS Vincent

27. LASATEN Ceska Andre F.

28. LOPEZ Joshua M.

29. MALABANAN Cristine Yvette I.

30. MALACAS Fersie Ann M.

31. MARINAS Nicole L.

32. MATEO Pamela Erika G.

34. NATONTON Richelle Marie C.

35. NAZAL Airon Noelle C.

36. ORADA Trisha Marie R.

37. ORFANEL Marc Geoffrey C.

38. PARANADA Hans Jefferson L.

39. PENA Alexsandrea Gaebryle

40. PERALTA Cheene A.

41. PEREZ Cristian P.

42. QUERIJERO Giancarlo C.

43. REYES Aquila Kate N.

44. SABATEN Hannah Hilary R.

45. SIOSON Patricia Dine D.

46. SIQUIAN Isidro Carmelo L.

47. TALACTAC Ayame V.

48. TAMIO John Paolo C.

49. TOLENTINO Corine Abigail A.

50. VENTURINA Faith Lynn L.

2. ALVAREZ Karylle Kristine F.

4. AUSTRIA Lorena Isabela E.

How much is Bangtan Company’s biological assets at January 1, 2021?

Fair value of mahogany tree 1/1/21 5,250

5. BAUTISTA Erin Ashley C.

6. BRAGO Maria Lourdes F

How much is SCOUPS Farm Biological assets?

Php 2,200x150 sheep= Php 3,300,000

7. CALICDAN Miguel Jose G.

-Price of the biological assets in an active market P2,500,000

-At how much should the biological assets be presented in the

Price of the biological assets in an P 2,500,000

8. CARUZ Xeanne Myrrh Q.