On January 1, 2020, Vernon Roche acquire an existing mango plantation for a price of P3,000,000...

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On January 1, 2020, Vernon Roche acquire an existing mango plantation for a price of P3,000,000 of that amount 1,000,000 was properly recorded as land, the remaining 2,000,000 however is attributed to the 1,000 mango trees capable of produce for an estimated life of 10 years. Requirements: 1. What account title can you suggest to be used in recording the mango trees; and under what standard shall it be accounted for? 2. What amount of assets shall be presented in the December 31, 2020 financial statement from the foregoing transactions? 3. What amount of expenses if any, shall be presented in the December 31, 2020 financial statement from the foregoing transactions? On January 1, 2020, Vernon Roche acquire an existing mango plantation for a price of P3,000,000 of that amount 1,000,000 was properly recorded as land, the remaining 2,000,000 however is attributed to the 1,000 mango trees capable of produce for an estimated life of 10 years. Requirements: 1. What account title can you suggest to be used in recording the mango trees; and under what standard shall it be accounted for? 2. What amount of assets shall be presented in the December 31, 2020 financial statement from the foregoing transactions? 3. What amount of expenses if any, shall be presented in the December 31, 2020 financial statement from the foregoing transactions?

Answer rating: 100% (QA)

1 The account title that can be used in recording the mango trees is Biological assets Mango trees I... View the full answer