ABC Company has the following information pertaining to its biological assets for the year 2020:

A herd of 150, 3-year old animals was held at January 1, 2020. Eight animals aged 2.5 years were purchased on July 1, 2020 for P 3,400, and ten animals were born on July 1, 2020. No animals were sold or disposed of during the period. Per unit fair values less estimated point-of-sale costs were as follows:

3.0-year old animal at January 1, 2020	2,000
Newborn animal at July 1, 2020	1,500
2.5-year old animal at July 1, 2020	3,400
Newborn animal at December 31, 2020	2,600
0.5-year old animal at December 31, 2020	3,000
3.0-year old animal at December 31, 2020	2,750
2.5-year old animal at December 31, 2020	3,650
4.0-year old animal at December 31, 2020	3,000

Instructions:

1. How much is the balance of biological assets as of January 1, 2020?

2. How much of the increase in the fair value of the biological asses due to price change?

3. How much of the increase in the fair value of the biological assets due to physical change?

4. What is the fair value of the biological assets as of December 31, 2020?

5. If four 2.5 years old animal was sold on July 1, 2020, how much is the balance of biological assets as of December 31, 2020?

Answer rating: 100% (QA)

1 Balance of biological assets as of January 1 20202000 ie 30year old animal at January 1 2020 2000 ... View the full answer