Dayag Farms is into cultivating agricultural lands. As of January 1, 2018, the company has a...
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Dayag Farms is into cultivating agricultural lands. As of January 1, 2018, the company has a farm located in the province of Cagayan that consist of two age group of bearer trees, 3- year old and 4-year old. The following are relevant information: Dec. 31, Fair Jan. 1, Fair Value Value Farm with 3-year old bearer tree Farm with 4-year old bearer tree Farm with 5-year old bearer tree, Including the fruit they bear P3,000,000 P2,400,000 4,200,000 P3,600,000 6,380,000 P5,400,000 5-year old trees started to bear fruit during the last quarter of the year. As of December 31, 2018, only 5-year old trees bear fruits that are ready to be harvested. The estimated fair value less cost to sell for the fruits is P500,000. There was no change in the Jair value of the contributory asset (land) as of December 31, 2018. If the bearer plants are considered to have dual purpose, by what amount of the change in the fair value of the bearer plants that pertains to the physical transformation? Dayag Farms is into cultivating agricultural lands. As of January 1, 2018, the company has a farm located in the province of Cagayan that consist of two age group of bearer trees, 3- year old and 4-year old. The following are relevant information: Dec. 31, Fair Jan. 1, Fair Value Value Farm with 3-year old bearer tree Farm with 4-year old bearer tree Farm with 5-year old bearer tree, Including the fruit they bear P3,000,000 P2,400,000 4,200,000 P3,600,000 6,380,000 P5,400,000 5-year old trees started to bear fruit during the last quarter of the year. As of December 31, 2018, only 5-year old trees bear fruits that are ready to be harvested. The estimated fair value less cost to sell for the fruits is P500,000. There was no change in the Jair value of the contributory asset (land) as of December 31, 2018. If the bearer plants are considered to have dual purpose, by what amount of the change in the fair value of the bearer plants that pertains to the physical transformation?
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Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
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